Accountability in Sovereign Debt: Analysing Kenya’s proposed debt swaps with a focus on ‘In the matter of Treaty for the Establishment of the EAC: Euginia Wanjiru Gikonyo v The Attorney-General of the Republic of Kenya - 3 July 2024.

Discussants: Prof James Gathii, Prof Attiya Waris, Dr Harrison Mbori, Ms Ivy Gikonyo, and Ms Marion Joy (moderator).

Partners: - Avid Readers Forum, Afronomicslaw and Ms Wanjiru Gikonyo.

Summary

The Forum centred on discussions regarding Kenya's sovereign debt and debt swaps, focusing on the principles of transparency and accountability. The speakers expressed concern about the limited availability of public information on debt arrangements, including the suggested food security swap with the World Food Program. Additionally, they highlighted the potential risks associated with debt swaps, such as disguised loans and insufficient public oversight.

During the forum, external entities proposing debt swaps and carbon credits as solutions to debt and climate crises were criticised. The speakers stressed the importance of considering local interests and highlighted challenges in achieving transparency in debt transactions. They also discussed the implications of debt default and the role of credit rating agencies. The panellists advocated for strategic negotiation approaches, including debt cancellation linked to historical responsibility, and emphasised the need for reforms in the international financial architecture.

In conclusion, the Forum reiterated the importance of addressing root causes and ensuring public participation in decisions related to debt.

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