TERMS OF REFERENCE - Oversight Role of Parliament in Public Debt Management

Consultancy to Conduct a Reflection Study on the Oversight Role of Parliament in Public Debt Management

About Mzalendo Trust

Mzalendo Trust is a Kenyan non-partisan Parliamentary Monitoring Organization (PMO) started in 2005 and whose mission is to ‘promote open, inclusive, and accountable Parliaments in Kenya and Africa.’ We do so by creating and managing civic tech tools, producing evidence-based research, and leading and facilitating advocacy and partnerships with Parliaments, citizens, and other relevant stakeholders. We believe that success in our work will build more effective and responsive legislation and political processes that ultimately support Kenya’s national development goals. In line with our Strategic Plan 2021-2025, we anchor our work on three main pillars: Openness, Inclusion, and Accountability. 

 

About the Project

The Royal Norwegian Embassy's grant, titled "Active Citizens and Independent Public Institutions Re-claiming Kenya’s Public Finance Oversight," is a strategic initiative focused on enhancing transparency, accountability, and citizen engagement in the management of public finances in Kenya. The grant specifically addresses the growing concern around public debt, which has become a critical issue due to the country’s rising debt burden. Its overarching goal is to empower active citizens and strengthen the capacity of independent public institutions to effectively oversee how public funds are allocated and used, ensuring they serve the interests of all Kenyans, especially the most vulnerable.

The program is designed to achieve several interrelated outcomes, including improving access to timely and accurate information on public debt, reinforcing the oversight role of independent institutions, and building sustained, citizen-driven advocacy movements that push for greater accountability in public debt management. Emphasizing collaboration, the initiative brings together government agencies, civil society organizations, the media, and local communities to address public finance challenges and promote inclusive participation in decision-making processes.

The implementation of the grant is structured in multiple phases and places a strong emphasis on research, advocacy, and public awareness campaigns.

 

Introduction and Rationale

Kenya is grappling with an escalating public debt crisis that threatens its economic stability and the welfare of future generations. With over 50% of public revenue now directed towards debt servicing, the burden of public debt has become a central concern for governance, development, and democratic accountability. Despite this, public debt continues to grow at an unsustainable rate rising by over 307% between 2013 and 2021, compared to a 112.8% growth in nominal GDP during the same period.

This sharp increase in public borrowing, especially under the administration between 2013 and 2022, has not yielded proportional economic gains. Instead, it has contributed to heightened fiscal deficits, questionable spending on mega-infrastructure projects, and an overreliance on costly, risky external debt. Kenya’s debt-to-GDP ratio surged from 35.66% to 68.22% during this period, while its debt-carrying capacity was downgraded from “strong” to “medium,” signaling emerging debt distress.

Parliament plays a constitutionally mandated role in public debt oversight, tasked with approving borrowing, scrutinizing public expenditure, setting debt ceilings, and ensuring compliance with debt management laws. Yet, as the debt crisis worsens, questions abound about the effectiveness of parliamentary oversight. Has Parliament fulfilled its legal obligations? Has it held the Executive to account for excessive borrowing, opaque transactions, and debt sustainability risks? Has it acted in the public interest to ensure transparency, fiscal responsibility, and intergenerational equity?

This reflection study seeks to conduct a comprehensive historical analysis of Parliament’s role in overseeing Kenya’s public debt from constitutional mandates and legal frameworks to actual practice and outcomes. By tracing key legislative decisions, oversight efforts, and moments of inaction or complicity, the study aims to assess Parliament’s performance, identify gaps in legal and institutional frameworks, and generate evidence-based insights for reform. The findings will inform civil society advocacy, policy recommendations, and broader national dialogue on restoring fiscal accountability and democratic control over Kenya’s public finances.

Purpose and Objectives of the Consultancy

The purpose of this consultancy is to conduct a Reflection Study that assesses the effectiveness of Parliament’s oversight role in public debt management and provides recommendations for strengthening its capacity and performance.

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Posted by Loise Mwakamba on June 18, 2025

Categories:  public debt   Consultancy   fiscal transparency

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