In a replying affidavit filed in court, EACC investigator Jemimah Githungu states that the commission conducted extensive investigations into the alleged misappropriation of approximately Ksh.250 billion raised through the sovereign bond.

According to the affidavit, investigators reviewed documents and recorded 56 statements from key public officials drawn from institutions including the National Treasury, the Central Bank of Kenya, and other government agencies. 

The probe traced the process of issuing the Eurobond, noting that Kenya raised a total of $2 billion in June 2014, followed by an additional $750 million through a tap sale later that year. The funds were initially held in offshore accounts at JP Morgan Chase Bank in New York before being transferred to accounts held by the Central Bank of Kenya.

EACC maintains that the bond issuance process followed due procedure, including the procurement of lead managers and legal advisers through competitive and lawful means. The commission further states that it found that the use of offshore accounts was legally justified under amendments to the Public Finance Management Act, which allowed the government flexibility in handling external loans.

The commission concluded that the net proceeds amounting to approximately Ksh.196.9 billion after loan repayments—were properly accounted for and transferred to the Consolidated Fund.

Following the investigations, EACC forwarded its findings to the Office of the Director of Public Prosecutions (ODPP), which independently reviewed the file and, in May 2016, directed that the matter be closed.

The affidavit also defends the actions of the commission’s former chief executive officer, arguing that statements issued to the public in 2015 were made in good faith and within the scope of official duties. It adds that the former CEO is protected from personal liability under the Constitution and relevant statutes.

Omtatah has challenged the findings and is seeking, among other orders, to hold officials personally liable for over Ksh.4.6 trillion allegedly linked to the Eurobond.

However, EACC insists the petition is “misleading and without merit,” arguing that it fulfilled its constitutional mandate and did not conceal any wrongdoing.

The commission has urged the court to dismiss the case with costs, maintaining that there is no evidence of fraud or loss of public funds in the Eurobond transactions. Citizen Digital