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Originally published by Nation Business
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business
May 3, 2026
3h ago

Audit flags Sh30bn Eurobond breach as government defaults on security loans

Audit flags Sh30bn Eurobond breach as government defaults on security loans

Auditor-General says move by the National Treasury is a violation of the law...

✨ Key Highlights

An audit by Auditor-General Nancy Gathungu has revealed that the National Treasury illegally diverted Sh30 billion in Eurobond proceeds to cover domestic debt shortfalls, violating the bond's subscription agreement.

  • Sh30 billion in Eurobond proceeds were used to cover Treasury Bond shortfalls.
  • The National Treasury and Auditor-General Nancy Gathungu are key entities involved.
  • The government also defaulted on five bilateral loans for security contracts totaling Sh15.42 billion as of June 30, 2025.

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