Chatham House: Kalonzo pledges audit of Gov't funds within 60 days if elected President

Wiper Patriotic Front leader Kalonzo Musyoka has pledged to audit all government funds, loans and contracts within 60 days of taking office if elected President in the August 2027 General Election, promising to tighten public financial controls and end what he describes as the misuse of public resources.

In his keynote address at Chatham House in London on Tuesday, October 13, Kalonzo said his proposed government would begin by publishing details of public funds, levies, securitised assets and financial guarantees, starting with proceeds from the sale of government assets and the digital system supporting the national health scheme.

He singled out approximately USD 2.6 billion (about Ksh.337 billion) in proceeds from the sale of shares in Safaricom and Kenya Pipeline, as well as USD 800 million (Ksh.103 billion) committed to a digital system for the health scheme, arguing that public funds must be subject to independent oversight.

“Every fund and levy goes under the Controller of Budget. No more off-budget Kenya,” Kalonzo declared, outlining the first phase of his proposed economic and governance programme, which he has branded ‘Rescue, Restore, Renew.’

The former Vice President said the proposed audit would form part of a broader effort to restore public confidence in government institutions, reduce waste and address the country’s mounting debt burden without introducing additional taxes or taking on new loans.

He argued that Kenya’s economic difficulties stem not only from public debt but also from a system in which government spending and contracts are shielded from adequate scrutiny.

“The disease is a State that borrows before it builds, spends where nobody can see, and sells what it should not,” he said.

Kalonzo used the address to paint a picture of an economy weighed down by debt servicing, rising household costs and declining development expenditure.

Citing figures in government documents, he said Kenya’s public debt stood at USD 100 billion (Ksh.12.98 trillion) as of June 2026, equivalent to 68.5 per cent of gross domestic product (GDP), against a statutory debt anchor of 55 per cent.

He further claimed that interest payments consumed 43 cents of every shilling collected in ordinary revenue during the 2025/2026 financial year, with the proportion rising above half when pension obligations were included.

According to Kalonzo, development spending had declined from 27 per cent of ordinary revenue in 2016 to 12.4 per cent, limiting the resources available for infrastructure and other public investments.

The Ukombozi Alliance (TUA) leader also criticised the government’s reliance on domestic borrowing, arguing that interest payments on domestic debt alone were projected to exceed the entire education budget.

“These are not opposition figures. They are in the government’s own papers,” he said, insisting that the next administration must address the debt burden through tighter controls on spending and greater transparency.

Kalonzo pledged to publish a comprehensive debt register, including securitised and collateralised obligations, and present it to Parliament.

He also proposed legislation to bind future administrations to a fiscal consolidation path, reduce the debt-to-GDP ratio towards the statutory limit and bring interest payments down towards 30 per cent of ordinary revenue.

Rather than seek fresh loans, he said his administration would prioritise recovering outstanding tax arrears, reducing the cost of government borrowing and improving the collection of existing revenues.

“The Auditor-General put uncollected tax arrears at USD 18 billion, in 2024. Collecting what is already owed comes before asking anyone for a new dollar,” he said.

Kalonzo added that the government would seek to widen the tax base by formalising informal businesses, closing tax exemptions and digitising revenue collection and customs operations.

He also promised a more predictable tax regime, with proposed changes published alongside impact assessments and subjected to meaningful public participation before implementation.

The opposition leader also renewed his criticism of recent government asset sales, particularly the disposal of a 15 per cent stake in Safaricom and the planned privatisation of Kenya Pipeline.

Kalonzo said his coalition had challenged the Safaricom transaction in court and welcomed a High Court ruling issued on September 15, 2026, which found the sale unconstitutional over inadequate public participation, concealment of material information and arbitrary pricing.

He further announced that the Court of Appeal had declined the government's application to suspend the High Court order, while noting that the Treasury had challenged the ruling.

The Wiper leader maintained that his objection was not to privatisation itself but to the manner in which public assets were being disposed of.

“We are not against privatisation; we are against secret privatisation,” he said.

He cited Safaricom’s 2008 listing on the Nairobi Securities Exchange (NSE) as an example of what he considers a more transparent approach, arguing that future divestitures should involve open price discovery, stock exchange listings and opportunities for ordinary Kenyan investors to participate.

Kalonzo also pledged to reverse the sale of Kenya Pipeline, while promising that any disputes arising from previous transactions would be handled through the courts.

“We will deal with court orders by due process and refund, never by expropriation. We will honour every lawful contract,” he said.

Kalonzo further criticised the proposed leasing of Jomo Kenyatta International Airport (JKIA) to a foreign conglomerate, claiming the transaction was abandoned only after the conglomerate's owner faced prosecution in another country.

He called for mandatory electronic procurement, a public register of beneficial owners of companies receiving government contracts and parliamentary approval for major deals awarded without competitive bidding.

Kalonzo identified the offices of the Auditor-General and the Controller of Budget as central to his proposed reforms, arguing that their findings on public expenditure had repeatedly gone unanswered.

He promised to ensure the two offices receive adequate funding and require government agencies to respond publicly to adverse audit findings within 90 days.

The proposed administration would also publish a quarterly scorecard tracking progress on public debt, interest payments, development spending, competitive procurement, health insurance claims, manufacturing, job creation and corruption.

“Trust is not asked for. It is measured,” he said, adding that his coalition would publicly acknowledge any targets it failed to meet.

Kalonzo argued that transparency would help restore investor confidence and reduce the cost of borrowing, while enabling the government to settle pending bills owed to suppliers.

He said national government pending bills exceeded Ksh.500 billion, arguing that clearing the outstanding payments would help businesses resume operations and support economic activity.

Using the analogy of a leaking bucket, he said the government should first stop financial losses before seeking additional resources.

“You do not answer a leaking bucket by walking back to the river for more water. Mend the bucket first,” he said.

Beyond fiscal reforms, Kalonzo outlined plans to increase manufacturing's contribution to the economy from approximately seven per cent of GDP to 10 per cent by 2032.

He proposed establishing a National Economic and Social Council bringing together government, businesses and labour unions to agree on economic priorities before the national Budget is prepared.

His administration would also seek to reduce electricity costs by reviewing expensive power purchase agreements, streamline business licensing and address illicit imports that undermine local manufacturers.

Kalonzo said about one million young Kenyans enter the labour market annually, with only a fraction securing formal employment, arguing that economic growth must be driven by production rather than taxation.

“No nation has taxed its way to prosperity; Kenya must produce its way there,” he said.

On healthcare, he pledged to establish an exchequer-supported financing model that would make services accessible across the country, ensure no hospital is excluded from the national scheme and require insurance claims to be settled within 30 days.

He also promised to increase health spending towards the 15 per cent target under the Abuja Declaration.

In education, Kalonzo proposed free and compulsory schooling through secondary level, adequately funded public universities and greater recognition of technical and vocational training as an alternative to university degrees.

He said development spending would be restored to at least 25 per cent of ordinary revenue by 2031.

On governance and security, he pledged to strengthen judicial independence, adequately fund constitutional commissions and end the practice of governing through executive notices where legislation was required.

He also promised independent investigations into deaths in custody, an end to enforced disappearances and protection of the right to peaceful protest.

Kalonzo's address also sought to present the opposition as a credible alternative ahead of the August 10, 2027 General Election, with unity and electoral integrity forming key pillars of his pitch.

He said the Wiper Patriotic Front, The Ukombozi Alliance and the United Alternative Government would work towards a common programme under the banner Komboa Kenya, or liberate Kenya.

The former Vice President said the opposition would publish its coalition agreement and ruled out joining a government it had not won through an election.

“Three platforms, one purpose: one written programme, Komboa Kenya, and one rule: no handshake, no nusu-mkate, not before the vote and not after it,” he said.

Kalonzo argued that previous opposition divisions had helped incumbents retain power, citing the 1992 and 1997 elections before the opposition united to defeat KANU in 2002.

He also called for electoral reforms ahead of the next election, including a trusted Independent Electoral and Boundaries Commission (IEBC), a publicly audited voter register, access to registration for eligible Kenyans living abroad and the publication of results at polling stations.

He further demanded safeguards against interference with the transmission of results, an electoral dispute resolution process with clear timelines and security agencies that protect voters rather than intimidate them.

Kalonzo called on diplomats and international election observers to publish their assessment benchmarks ahead of the election and deploy long-term observers from January 2027, including at polling stations outside Kenya.

He also linked electoral credibility to the treatment of young people, recalling the 2024 anti-Finance Bill protests and the subsequent demonstrations in which young Kenyans were killed, abducted or injured.

“A government that answers its children with bullets has forfeited the right to lecture them on patriotism,” he said.

He claimed that he had represented families of abducted Kenyans in court and vowed that those responsible for ordering unlawful actions would be held accountable.

On foreign policy, Kalonzo promised to restore Kenya's tradition of non-alignment, arguing that the country’s diplomatic influence depends on its ability to engage rival parties without being perceived as taking sides.

He criticised the government's handling of Sudan's conflict, referring to the February 2025 signing in Nairobi of a charter for a parallel government by the Rapid Support Forces (RSF).

Kalonzo said the move had damaged Kenya's relations with Sudan, including the recall of Khartoum's ambassador and the suspension of Kenyan imports, threatening trade and Kenya's role in regional mediation.

He pledged that his administration would not deploy Kenyan soldiers or police officers abroad without parliamentary approval and a funded, internationally sanctioned mandate.

Regionally, he proposed integrating East African capital markets to enable investors to purchase securities across borders without waiting for the stalled monetary union.

Under the plan, pension funds in Nairobi could invest in bonds issued in Kampala, while companies in Kigali could list on the Nairobi Securities Exchange, with each market retaining its own currency.

He also called for stronger economic ties with the United Kingdom through investment partnerships, infrastructure financing and regulatory cooperation, arguing that Kenya should engage foreign partners on terms that benefit both sides.

“We are inviting Britain to build with us, as partners, not patrons; through investment, not extraction,” he said.

Addressing questions about his long political career, Kalonzo defended his experience, saying his record in government and diplomacy would be an advantage in navigating the country's economic and governance challenges.

He has previously served as Vice President, Foreign Affairs Minister and in other Cabinet positions, including Education, Tourism, Environment and Home Affairs.

Kalonzo said his campaign was not based on novelty but on experience, a written policy programme and measurable commitments.

“I am not offering novelty. I am offering what Kenya has not had in a decade: experience that has been tested, and a written promise that can be measured,” he said.

He acknowledged that an incoming administration would face a strained Treasury, declining public confidence and increased competition for investment, but maintained that institutional reforms could help restore economic stability.

The opposition leader concluded by urging investors, diplomats, journalists and Kenyans in the diaspora to scrutinise his proposals rather than accept them at face value.

He said the coalition would publish its programme's full costing and allow the public to assess its performance against quarterly targets.