Senior Counsel Paul Muite has questioned the Treasury and the Central Bank of Kenya (CBK) over the handling of domestic bond proceeds, after a recent Auditor-General report highlighted gaps in how part of the money was traced.

Muite said the situation raised serious concerns and demanded answers from the two institutions.

In a direct post on X on Tuesday, November 25, 2025, Muite asked how such a large sum could move through the system without clarity.

“Diplomatic way of saying stolen. Who has the capacity to walk away with 300B of government bonds without the Treasury and CBK’s knowledge or complicity? Kenyans are now almost numb with this looting. Mind-boggling impunity. Mta-do?” he wrote.

Muite was reacting to a report that reviewed domestic borrowing between 2018 and 2023. The Auditor-General noted that the Treasury raised Ksh2.97 trillion in domestic bonds within that period. Most of the money did not go to development projects, even though domestic borrowing is often justified as a way to finance infrastructure.

According to the report, Ksh2.67 trillion went into recurrent spending through the Consolidated Fund Services account, which pays for salaries, pensions, and debt obligations. Another Ksh558.87 billion was used to repay maturing domestic debt. The story further stated that Ksh2.1 trillion was released to ministries and agencies mainly for recurrent activities.

The report also said that auditors could not clearly track how Ksh300 billion was used because the trail ended before identifying its final destination. The report did not accuse any official of wrongdoing. It simply stated that the Treasury did not have a mechanism to ring-fence bond proceeds for the projects they were borrowed for, making it difficult to confirm how certain funds were applied.

It is this lack of clarity that prompted Muite’s sharp reaction. He argued that the Treasury and CBK should have full visibility of all bond transactions, especially when the amounts involved are so large.

Rising alarm over debt

His comments have added pressure at a time when questions about government borrowing continue to dominate public debate. Only earlier, Kiharu MP Ndindi Nyoro raised similar concerns in Parliament as he criticised the scale of Kenya’s daily borrowing. Nyoro said Kenya was taking on Ksh3.5 billion every day, calling the pace unprecedented. He also pointed to other forms of borrowing, including securitisation, which he described as illegal.

Nyoro made the remarks while challenging President William Ruto’s economic claims. He argued that Kenya’s growth figures did not match those of its East African neighbours, and he questioned the stability of the shilling and the performance of the Nairobi Securities Exchange. Nyoro said the government needed to confront hard facts rather than rely on optimistic narratives.

The Treasury has not yet issued a detailed response to the concerns raised about the bond proceeds.