The National Assembly wants to take charge of decisions that commit Kenya's money to the East African Development Bank (EADB), with a new Bill seeking to ensure the Treasury can no longer release or guarantee public funds to the regional lender without first obtaining Parliament's approval.
The proposal is expected to give lawmakers a stronger hand in overseeing how taxpayer money is committed to international financial institutions.
The Bill, sponsored by Majority Leader Kimani Ichung'wah, proposes changes to the East African Development Bank Act to make approval by the National Assembly a requirement before Kenya subscribes additional capital or enters into new financial commitments with the regional bank.
The proposed changes would remove the current arrangement that allows the Cabinet Secretary for the National Treasury to authorise payments from the Consolidated Fund to the EADB without first seeking the approval of lawmakers.
Supporters of the amendment say the changes are aimed at strengthening accountability in the management of public resources by ensuring Parliament has a direct role whenever the country commits more money to the regional lender.
"The principal object of this Bill is to amend the East African Development Bank Act... to require the approval of the National Assembly prior to the Cabinet Secretary authorising a charge or issuance of public funds from the Consolidated Fund to the EADB,” the Bill reads.
“The Act currently authorises the Cabinet Secretary for the National Treasury to commit and disburse funds from the Consolidated Fund to the EADB without the approval of the National Assembly.”
Once enacted, the amendment would subject Kenya's future financial commitments to the EADB to the same level of parliamentary oversight that has increasingly been extended to public borrowing, sovereign guarantees and other major financial obligations involving public funds.
The proposal also reflects the constitutional role of the National Assembly under Article 95, which gives MPs the responsibility of overseeing national revenue and expenditure while approving taxation, public debt measures and other major financial decisions.
The Bill has been introduced at a time when Kenya's financial relationship with the regional lender has continued to attract public attention. Last year, the High Court ordered Treasury Cabinet Secretary John Mbadi to disclose all payments Kenya has made to the EADB since 2014 after a petition questioned the limited public disclosure of the country's financial obligations to the institution.