The project of Northlands City, a planned high-end residential and commercial hub by the Kenyatta family, has raised significant public scrutiny over its alleged funding origins.
Central to the controversy is the suspicion that some of the 2014 Eurobond proceeds may have indirectly funded this massive development.
Critics argue that instead of benefiting the nation as promised, a substantial part of the Eurobond funds originally aimed at infrastructure and budgetary support went unaccounted for, leaving a cloud over whether Northlands City was among projects that may have benefited from this untracked money.
The Eurobond itself, issued by Kenya in 2014, raised $2 billion (approximately Ksh. 215 billion) with the stated intent of funding infrastructure projects and alleviating the fiscal deficit.
However, questions on its usage quickly surfaced as opposition leaders, particularly Raila Odinga, pointed out that despite the infusion of such a substantial amount, the country had little visible to show for it in terms of infrastructure improvements.
For instance, while projects like Thika Superhighway cost Ksh. 30 billion, the Eurobond allocation seemed disproportionate to the infrastructure that was reportedly built, intensifying suspicions about the untraceable funds.
The then auditor-General Edward Ouko’s reports repeatedly flagged the Eurobond transactions as problematic.
His investigations were inconclusive about the final allocation of the funds, as substantial portions reportedly bypassed Kenya’s central financial systems.
Ouko’s audits identified that parts of the money transferred from the New York Federal Reserve remained untraceable within Kenyan project records, despite government assurances that the funds were appropriately spent.
While Treasury officials and former President Uhuru Kenyatta publicly defended the management of the funds, insisting no money was lost, the continued lack of clear accounting raised further doubts.
These unanswered questions have sparked calls for accountability, as many Kenyans believe this mismanagement of public funds contributed to the country’s current debt burden.
Now, with Kenya facing ongoing fiscal strain and risk of potential default, public sentiment is growing around repossessing properties like Northlands City, viewing them as symbols of misappropriated public wealth.
This view holds that if Kenya were to default, properties funded by allegedly misused public money should be reclaimed to serve the people.
This argument aligns with a broader frustration over elite land ownership and the perception that wealth derived from public funds has unfairly benefited a select few.
The ongoing debate over the 2014 Eurobond mismanagement underscores a critical challenge in Kenya: ensuring transparency and accountability in large financial undertakings.
The situation with Northlands City thus serves as a reminder of the broader economic inequality and public distrust in government dealings, intensifying calls for systemic reforms to protect public interests in such mega-projects.
