Kenya’s Sh1 billion payment for its membership to the African Finance Corporation (AFC) is facing heavy scrutiny, with Parliament summoning key government officials to explain how the funds were spent without the approval of lawmakers.
Prime Cabinet Secretary Musalia Mudavadi, Trade and Investment Cabinet Secretary Lee Kinyanjui, and National Treasury Cabinet Secretary John Mbadi have been called to answer questions about the controversial expenditure.
Trade and Investment CS Lee Kinyanjui gestures during a past event. Photo: Lee Kinyanjui Source: Facebook
According to Nation Africa on Monday, February 24, 2025, the payment, made for Kenya’s membership in the Abuja-based AFC during the 2023/24 fiscal year, was made without parliamentary ratification of the Accession Agreement for the AFC, which is a legal requirement under the Treaty Making and Ratification Act of 2012.
The law mandates that treaties be submitted to Parliament for approval before any financial commitments are made by the government.
However, the agreement was approved by the Cabinet in 2017 and signed by Mudavadi in October 2024, bypassing Parliament’s ratification process.
Prime Cabinet Secretary Mudavadi is expected to explain why he proceeded with signing the agreement and initiating the payment without seeking parliamentary approval.
National Treasury CS John Mbadi during a past political rally. Photo: John Mbadi Source: Facebook
National Treasury’s John Mbadi and Trade and Investment Secretary Kinyanjui will also face questions about how the Sh1 billion was processed without proper oversight.
Additionally, the Attorney-General and Solicitor-General will be asked to clarify their involvement in the process and whether they reviewed and approved the agreement before it was signed.
The AFC, which is an affiliate of the African Development Bank (AfDB), offers financing for large-scale infrastructure projects across Africa.
Prime CS Musalia Mudavadi speaks during a past media presser. Photo: Musalia Mudavadi Source: Facebook
Kenya’s membership was expected to support the country’s development goals, particularly under Vision 2030.
However, the lack of parliamentary approval has raised concerns about the transparency and legality of the process.
The parliamentary committee, led by Molo MP Kuria Kimani, is investigating the matter to ensure that the Cabinet adhered to legal procedures and that such expenditures are fully scrutinized in the future.
