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Honorable Chief Justice of Kenya, Chief Justice Martha Koome,
Distinguished Judges of the Supreme Court,
President of the Kenya Law Society, Mrs. Faith Odhiambo,
Committee Members of the Kenya Law Society,
Esteemed Judges,
Respected Members of the Bar,
Learned Friends and Partners in Development,
Members of the Press,
Distinguished Ladies and Gentlemen.
Good morning!
I wish to thank you for inviting me today to address the Kenya Law Society’s 2025 Annual Conference.
It is always a joy to be back in Kenya.
I consider myself a Kenyan. I lived here for close to nine years and have so many friends here, including Justices and lawyers.
I am always at home in Kenya.
And I am especially humbled that President Ruto greatly honored me by conferring on me Kenya’s highest national honor, the Chief of the Order of the Golden Heart.
I feel greatly honored to be invited to speak to you today at this special event, which brings together the legal luminaries of Kenya. You, the judiciary are the guardians of societies, founded on the rule of law and guided by the constitution, and the will of the people.
I will be speaking on: “Public Finance, Governance, Justice and Development”.
According to the Corporate Finance Institute, public finance refers to the management of a country’s revenue, expenditures, and debt obligations through various government and quasi-government institutions.
More simply, public finance is the system by which governments mobilize, manage, and allocate public resources to meet the needs of their citizens and advance national development.
Ultimately, the way a nation raises revenue, manages debt, allocates spending, and enforces accountability in the use of public funds determines the overall wellbeing of its people.
Public finance, therefore, is not simply a government ledger; it reflects a nation’s constitutional values and legal integrity. When managed effectively, public finance can serve as a cornerstone for economic growth, sustainable development, and prosperity.
Public financing stands at the heart of the African Development Bank Group’s commitment to advancing accountable governance, sustainable development, and national resilience.
At the African Development Bank, public finance is regarded as a strategic instrument that must be governed transparently, managed sustainably, and protected by robust legal frameworks and the rule of law.
Nations that enhance rule of law and adhere to good governance achieve higher growth rates, equitable development and are more stable.
As members of the judiciary, you play a major role in shaping the trajectories of development of nations. The theory of justice and development offers a powerful contextual framework for achieving this, as it drives social progress and cohesion.
Of particular importance is how the rule of law drives growth and development.
The Global Rule of Law Index from 1996-2023 (Source: The Global Economy.Com) shows that the topmost 6 countries are Finland, Denmark, Norway, Switzerland, Austria and Luxembourg.
African countries ranked very low on the global rule of law index, starting in the 60th position with Seychelles, Botswana (70th), Rwanda (80th), South Africa (85th), Ghana (97th) and Morocco (111th). Kenya ranked in the 111st position, while Nigeria ranked in the 151st position.
Africa must do better on the rule of law index.
That is because the rule of law, which also includes the sanctity of contracts, is an important factor in attracting investments to countries.
So important is the rule of law in attracting foreign direct investment that the American Bar Association has in place a rule of law initiative to “promote justice, human dignity and economic opportunity through the rule of law”, which it considers a “necessary condition for robust economic development”. (David Dettman, 2024 “Upholding prosperity: the economic benefits of the rule of law”. Centre for Global Development Programs News, USA).
To fill financing gaps, nations turn to foreign direct investment. Africa faces an annual foreign direct investment financing gap of over $100 billion.
Evidence suggests that foreign direct investments move more to countries that have political stability, stable democracies, transparency and low levels of corruption.
Other important drivers include independent and transparent judiciary, strong regulatory frameworks, public accountability, efficient public service, competition policy, as well as respect for intellectual property rights. (Samina Sabir, Anum Rafique, and Kamran Abbas, 2019: “Institutions and FDI: evidence from developed and developing countries’ Financial Innovation, 5, Article No. 8).
These factors are especially important for Africa, where many countries rely on revenues from natural resources to finance their economies, including oil, gas, minerals, metals, forests, marine resources and vast lands for agriculture.
However, this richness in natural resources has not always translated into economic prosperity.
At the heart of the dissonance is the issue of governance and rule of law over natural resources. Nations that have strong natural resource laws and rule of law have been able to turn their natural resources into wealth for their population.
Africa’s natural resource-rich countries should learn from successful experiences of countries that have turned their natural resource wealth into prosperity for their populations.
Norway, which relies largely on oil and gas, has in place strong and transparent natural resource laws that guide concessions, acquisition and exploration of natural resources, while protecting biodiversity and securing the prosperity of future generations.
Through such laws and regulations, Norway has been able to establish the largest sovereign wealth fund in the world, worth about $1.9 trillion from revenues from its oil and gas for the benefit of generations.
Norway is a AAA-credit rated country.
Saudi Arabia, which relies on oil and gas for its economy, today has its national oil company, Aramco, with a market capitalization of over $1.6 trillion.
What lessons can African countries learn from this?
First, there is nothing really called ‘natural resource curse’; how could what makes some nations rich end up making some poor? The difference lies on governance, transparency and public accountability over natural resources.
Second, natural resources of countries should be targeted for the benefit of the people; avoiding rent seeking, rent grabbing, and elite-driven state capture or corruption.
Third, communities should be involved in the management of natural resources; and strong efforts should be made to ensure that multinational corporations are held accountable for environmental externalities based on the polluter pays principle.
Fourth, the judiciary should play a greater role in development of natural resource laws that ensure good governance over the nation’s natural resources. The judiciary should also play a greater role in ensuring compliance with these laws.
Fifth, nations should have a longer-term perspective on their natural resources. Earnings from natural resources should be invested in building human capital, social development and infrastructure, which will ensure the sustainable development of their economies.
Nations should guard against wasting windfall revenues from natural resources by simply ramping up public expenditure. Rather, they should establish and grow their sovereign wealth funds and pension funds. These funds are important to secure the prosperity of future generations.
I would also like to propose that the judiciary should get involved on the issue of rising public debt for developing countries, especially in Africa.
Today, Africa’s public debt has exceeded $1.3 trillion. The structure of debt has changed over time, as traditional concessional debt from multilateral and bilateral creditors are declining and being overtaken by reliance on Eurobond debt to commercial creditors.
The change in the structure of Africa’s debt which has led to a greater reliance on commercial creditors has raised a lot of challenging legal issues for many African countries.
While restructuring of debt of nations, official and commercial creditors are required to agree on comparative debt treatment to bring debt to manageable levels.
However, the framework has always been undermined by uncooperative private creditors. By refusing to sign on to the debt restructuring frameworks, the holdouts devise legal plots to rip countries off.
‘Vulture funds’, backed by hedge funds, buy off the debt of countries on secondary markets at a discount. Then taking advantage of the lack of a legally binding framework or global institution for dealing with bankruptcy of nations, they turn around to sue debtor nations for full payment of the discounted debt, including backdated interest payments, and legal fees.
From Argentina to Greece, Brazil and Puerto Rico, vulture funds have raked in billions of dollars from their legal profiteering approaches.
Africa has not been spared.
The vulture funds take advantage of legal jurisdictions in creditor countries where they always secure favorable judgements.
Let me cite some examples based on reporting by Jubilee USA.
Two vulture funds bought a 30-year-old commercial bank debt of Liberia for $6.5 million in 2009. They then took the country to court to make claims for full payment of the discounted debt. By the time of a UK court ruling in 2010, the debt claim had risen to $43 million.
Jubilee USA network report cases for Democratic Republic of Congo, where an American vulture fund bought an $ 8 million worth of debt for a discounted value of just $800,000. It then sued the country to pay back $27 million.
In Zambia, a vulture fund bought a $30 million debt of Zambia for a discounted value of $3.3 million. It then took the country to court and secured a judgement in its favor for over $55 million, which was eventually settled for $15.4 million.
What lessons can African learn from these experiences and what roles can the African legal profession play?
First, the practice where debt agreements are signed and subject to law in jurisdictions that have been known to always favor the creditors not the debtor nations should be reviewed to ensure fair hearings, equity and justice before the law.
Investors choice of foreign jurisdictions suggest preferences for legal systems they know and trust, and their belief that there is rule of law and judicial independence, transparency in their nations.
By implication it suggests that they do not trust the judicial systems in African countries. African judiciary systems should rise to this challenge. They must assure judicial independence that engenders trust and confidence of foreign investors in dealing transparently, justly and fairly with disputes – essentially, assure the rule of law.
This will be further enhanced through greater ethical standards and reduction of perceived corruption in the judiciary. There is no substitute for a very transparent, capable, fair, just and independent judiciary to curtail currently existing moral hazards in the global debt arbitration systems.
Second, African countries should also prioritize legal arbitrations in African jurisdictions. Equally important is building and strengthening of the capacity of African arbitral institutions.
The establishment of the African Arbitration Academy, to train young arbitrators, is a good development. Such efforts should also deepen and strengthen partnerships at the national and regional level arbitral institutions, while aligning with international arbitral institutions and treaty agreements.
Third, investors should use Africa-based arbitration systems for loans and agreements signed with African governments and corporate entities. This will avoid the inherent biases, cultural differences and loopholes often existent in legal systems of the creditor countries, as well as lack of sensitivities to local contexts of nations.
Fourth, the judiciary should get more involved in the development of their countries and move beyond the text-based interpretations of law and the constitution, as important as those are.
When, for example, vulture funds take advantage of legal loopholes in international debt resolution frameworks, threaten the asset of countries through enforcement of liens on national assets; the judiciary should get involved in safeguarding their countries’ national interest and assets.
Fifth, to prevent the pernicious effects of vulture funds on debtor countries, global debt resolution systems should have enforcement systems that prevent free transferability or assignment of sovereign debt, where they can be easily bought at discounts on the secondary debt market and used for subterraneous financial motives.
It is clear that many African countries lack the capacity to properly negotiate public contracts. Yet, these contracts will shape the future of economies.
That is why the African Development Bank established the Africa Legal Support Facility, to support African governments to protect their sovereignty, negotiate fairer deals, and defend their constitutional and economic rights.
Since its inception, the African Legal Support Facility has supported over 50 African countries in negotiating and renegotiating commercial, extractive, infrastructure, and sovereign debt contracts.
Through its work, the Africa Legal Support Facility has helped to avert more than $ 4 billion in potential public losses; resources that have been redirected toward national development.
As a public institution, the African Development Bank holds itself to highest standards of transparency, public probity and accountability.
At the core of this is ensuring that Bank-financed projects do not cause irreparable damages to communities, are inclusive, provides voice for project affected persons. It also fosters a transparency system which ensures the compensation of project affected persons and provides an accountable platform to have grievances heard and addressed in project design and implementation.
The Bank does this through its Independent Recourse Mechanism. Since its establishment in 2004, the Independent Recourse Mechanism has processed a large number of eligible complaints, with uptake accelerating in recent years as more communities become aware of its existence and trust in its impartiality.
The Mechanism affirms a powerful truth: justice and development are not parallel paths; they are converging tracks toward inclusive growth.
At the core of development projects financed by governments, from their own fiscal resources and from financing of development finance institutions, is the transparency of the procurement systems.
Lack of transparency in procurement for projects, due to weak institutional capacities, procurement laws and systems, as well as corruption, pose integrity challenges to efficient use of public financing for projects.
The African Development Bank has zero tolerance to corruption. We place integrity at the heart all of our financed projects. The Bank’s office of Integrity and Anti-corruption strictly enforces our zero-tolerance policy towards fraud, misuse of entrusted power, collusion and coercion in all Bank-supported projects.
The Bank’s two-tier sanctions system reflects a deep respect for due process and fairness. Allegations of misconduct are reviewed by the Sanctions Commissioner, with rights of appeal to an independent Sanctions Appeals Board. The Sanctions Commissioner and the Independent Sanctions Appeals Board have eminent jurists, some of them having served as former Justices of the Supreme Court.
When managed effectively, public finance can serve as a cornerstone for economic growth, sustainable development, and prosperity
Sanctions range from debarment to prosecution referrals, ensuring accountability without compromise. We also promote rehabilitation through mandatory compliance programs that help entities reform and re-enter the marketplace as ethical actors.
The Bank’s approach is anchored on two foundational pillars: first, that every dollar deployed must deliver tangible development outcomes, whether in the form of schools, hospitals, infrastructure, or jobs; and second, that public debt must remain sustainable to protect fiscal sovereignty and safeguard the future of African nations. This philosophy is reflected across the Bank’s interventions throughout the continent.
For the African Development Bank Group, strengthening public finance is inseparable from enforcing constitutional safeguards and legal accountability.
The Bank has helped countries to improve their systems on governance and the rule of law.
Let me cite a few examples.
In Kenya, the African Development Bank has supported reforms that strengthen parliamentary oversight over public borrowing, enhance debt transparency, and modernize procurement processes; ensuring that public resources are used efficiently, transparently, and for the benefit of citizens.
In Seychelles, African Development Bank’s support for constitutional reforms has required all sovereign borrowing to receive parliamentary approval. This intervention contributed significantly to reducing Seychelles' debt-to-GDP ratio from over 100% in 2008 to below 55% in 2022.
This improved the country’s sovereign credit rating and reduced borrowing costs, reaffirming that constitutional safeguards are not theoretical ideals, they deliver practical economic outcomes.
In Botswana, fiscal management reforms combined with constitutional safeguards, supported by the African Development Bank, have entrenched macroeconomic stability and positioned Botswana as one of Africa’s most transparent and most financially stable nations.
Similarly, in Rwanda, African Development Bank-backed reforms in public finance oversight, transparent public reporting, and integrity-enhancing governance frameworks have strengthened fiscal discipline and boosted investor confidence, positioning the country as a credible investment destination.
The African Development Bank recognizes that public finance reforms must be complemented by strong legal and judicial institutions to enforce transparency, protect investor rights, and uphold the rule of law. Across the continent, the Bank has invested extensively in strengthening the judiciary to complement public finance reforms.
And these are not abstract investments, they are tangible, measurable, and transformative.
Let me highlight just a few examples.
In Rwanda, the Bank’s support for specialized commercial courts reduced dispute resolution times from over 500 days in 2009 to just 230 days by 2022. This reform alone unlocked approximately $2 billion in foreign direct investment between 2015 and 2022.
In Côte d'Ivoire, the modernization of commercial courts, backed by the African Development Bank, reduced the average time taken to resolve commercial disputes by 40%, between 2014 and 2021. This judicial reform has contributed to sustained annual foreign direct investment inflows exceeding $1 billion from 2017 to 2021.
In Malawi, the establishment of a Commercial Division in the High Court under African Development Bank’s Malawi Competitiveness Growth Support Program reduced commercial dispute resolution times by approximately 35%.
This contributed to improving Malawi’s ranking from 132nd to 109th globally for enforcing contracts as reported in the World Bank Doing Business 2020 report.
In Tunisia, African Development Bank’s support for the Competitiveness Support Program led to a 25% reduction in the average time required to resolve commercial disputes. Tunisia’s global ranking for contract enforcement improved from 81st to 65th.
In Guinea, Bank’s support for the Program for Financial and Institutional Governance of Justice improved transparency and efficiency in commercial dispute resolution, reducing case durations by 20% over five years and fostering increased domestic investment.
In Ghana, the Business Enabling Environment Program supported by both the African Development Bank and the World Bank helped to restructure commercial courts and digitize case management systems. This reduced the average dispute resolution times from over 700 days to approximately 400 days. Ghana’s global ranking in enforcing contracts subsequently rose from 120th to 116th.
In Egypt, African Development Bank’s supported reforms under the Economic Governance and Private Sector Development Program modernized commercial courts, leading to a 20% reduction in case resolution times between 2017 and 2022. Egypt’s global ranking for enforcing contracts subsequently improved to 100th as reported in 2020.
In Mozambique, the Bank’s Project to Support Justice Sector Reform resulted in a 25% reduction in the time taken to resolve commercial disputes, positively impacting business confidence in the construction and trade sectors.
Collectively, these interventions underscore a simple but profound truth: public finance cannot thrive in a vacuum. It must be protected by transparent governance, reinforced by judicial efficiency, and anchored in constitutional safeguards.
By combining public finance reforms with strengthening of the legal system, the African Development Bank has demonstrated that fiscal management is not simply an economic or technical task, it is a constitutional duty, a legal obligation, and a practical mechanism for advancing Africa’s development.
Where public resources are raised transparently, managed accountably, and protected by independent courts, countries are better positioned to attract investment, sustain growth, and achieve inclusive development.
In essence, public finance, when aligned with constitutional principles and the rule of law, becomes not just a means of managing national budgets, it becomes the foundation for economic sovereignty and sustainable development across Africa.
Parliamentary oversight is the democratic backbone of Public Finance. At the African Development Bank, public finance is not simply about disbursing funds, it is about anchoring every financial decision in democratic legitimacy and national ownership. This is why, for the effectiveness of any public sector loan, grant, or guarantee, the Bank requires clear evidence of parliamentary oversight and authorization.
These approvals take various forms: direct parliamentary ratification of financing agreements, endorsement of national debt ceilings, a Certificate of Indebtedness, a budget law allocating external financing, and inclusion in the national budget or Medium-Term Debt Strategy.
These instruments are not mere formalities; they are constitutional expressions of accountability that guide the Bank’s operations across the continent.
In Kenya, the Public Finance Management Act (Cap. 412A), provides the legal framework for managing public debt, outlining the roles of Parliament and County Assemblies in overseeing public finances in line with constitutional principles. While not every financing transaction requires direct parliamentary approval, the law requires that the Cabinet Secretary for the National Treasury and Economic Planning issue a Certificate of Indebtedness confirming that the proposed loan or guarantee will not breach the statutory debt ceiling.
To satisfy the Bank’s legal requirements, this must be accompanied by a legal opinion from the Attorney General confirming that the financing agreement has been duly authorized, executed, and constitutes a valid and binding obligation of the Republic of Kenya.
This streamlined system, rooted in national law and supported by the Bank has reinforced fiscal discipline, safeguarded debt sustainability, and facilitated timely access to development financing.
Public finance without parliamentary oversight is undemocratic and non-sustainable. Democratic scrutiny does not delay development; it protects it. Parliamentary approval is not an obstacle, it is a safeguard that ensures every dollar borrowed serves the public good, not private interest.
By placing legislative oversight at the center of our financing architecture, the African Development Bank affirms that public resources must be governed by public will.
This is not just about process. It is about justice. Because every financing instrument, every loan, and every grant is not just a number, it is a promise. And that promise must be made before the people, through the institutions they elect to represent them.
With constitutionalism and the rule of law firmly established, it is critical that legal systems and the judiciary be strengthened across the continent. A nation’s legal system serves as its institutional backbone, safeguarding public resources, protecting the rights of citizens, and creating the certainty and predictability upon which all economic activity depends.
An independent judiciary, underpinned by constitutional safeguards and protected by the clear separation of powers, ensures that the management of public finances is not left to unchecked discretion, but is bound by clear legal frameworks and subjected to impartial oversight.
Where judicial independence is compromised, courts become vulnerable to political influence, fiscal rules are bypassed, public borrowing escapes scrutiny, and public confidence collapses.
This is why, across Africa, the African Development Bank has placed legal and judicial reform at the center of its governance and public finance support. And this is not just a policy on paper, it is impact in motion.
Let me give a few examples that show how this commitment is transforming lives and restoring trust in institutions.
In Liberia, after years of civil conflict, the African Development Bank helped to restore and equip court infrastructure, digitize court systems, and train judges in public finance and contract law, restoring the credibility of legal institutions and supporting fiscal oversight.
In Gambia, Bank-supported reforms modernized judicial operations and public finance management, increasing development budget execution by over 15% between 2022 and 2024.
In Mali, despite ongoing fragility, the African Development Bank helped to deploy mobile courts and trained legal officers to resolve over 12,000 disputes, many related to land and fiscal issues, preserving livelihoods and preventing the escalation of conflict.
In São Tomé and Príncipe, the Bank provided technical support for the enactment of a new arbitration law aligned with international best practices, unlocking renewed investor interest in fisheries and tourism and enhancing dispute resolution frameworks.
In South Sudan, foundational commercial and judicial laws were drafted and adopted with African Development Bank’s support, while over 150 judges have been trained, laying the groundwork for investor trust and legal certainty in one of Africa’s newest nations.
In Togo, with African Development Bank’s support, contract enforcement time has dropped by 25% due to reforms in court digitization, while boosting the confidence of local businesses and foreign investors.
One cannot speak meaningfully about constitutionalism, the rule of law, and investment in Africa without addressing the foundational issue of access to justice and fair compensation. These are the very conditions that foster public trust and build the confidence investors need to commit capital.
When justice is accessible, and compensation is fair, development becomes inclusive, governance earns legitimacy, and economic growth becomes truly sustainable.
At the African Development Bank, we hold a simple but profound conviction: development must be anchored in fairness, justice, and the protection of human dignity. Infrastructure and investment alone are not enough. We must ensure that every person impacted by our projects is treated with equity, dignity and respect.
This is why the African Development Bank enforces a compensation policy that goes beyond formal landownership. Across much of Africa, countless communities live and work on land under customary tenure, land not reflected in formal registries, but land upon which entire livelihoods depend.
African Development Bank’s position is clear and unequivocal: whether or not a community holds a title deed, they are entitled to just and fair compensation.
This is not theoretical.
In Kenya, during the construction of vital road and energy infrastructure, the African Development Bank ensured that rural and pastoralist communities displaced from ancestral lands received full compensation and livelihood restoration, even without formal documentation.
In Uganda, through the support of the African Development Bank, informal urban settlers affected by development projects received resettlement support, legal protection, and means to rebuild their lives.
In Côte d’Ivoire, displaced farmers were compensated not just for land, but for future income losses, and supported with access to services and alternative livelihoods.
These are tangible demonstrations of the rule of law in action, where fairness is not just promised but delivered.
But compensation alone is not enough. Access to justice itself is a fundamental right.
That is why the African Development Bank invests in modernizing court registries, digitizing legal frameworks, and expanding legal literacy through online platforms and outreach, ensuring that even the most marginalized communities understand and can claim their rights.
In parallel, we advocate for the provision of legal aid and the institutionalization of pro bono services within national bar associations. Justice must never be a privilege for the few, it must be a guarantee for all.
Through grievance redress mechanisms embedded in our projects, including in Tanzania and Ethiopia, we have ensured that affected individuals can challenge decisions, file complaints, and seek timely, independent mediation.
These systems allow justice to be delivered not in theory but in real-time, at the community level, with procedural integrity and respect for human dignity.
This integrated approach, fair compensation, accessible legal systems, digitized law, legal aid, and robust grievance mechanisms, brings the principles of constitutionalism and rule of law into the everyday lives of African citizens.
It transforms development from a top-down transaction into a participatory and accountable process.
One area that is critical for social justice and participation is improving land ownership laws, to give farmers title deeds to their lands that can act as collateral for access to finance.
And more importantly, laws should be changed to ensure that women have secure property rights. No nation can develop without its women. No bird flies with one wing. It is not just about right, it is about equity, fairness, and justice.
Because we know this truth: justice is not a byproduct of development. It is the foundation of development.
Distinguished Learned Friends and Partners in Development.
In this hall today sits the guardians of Kenya’s promise, and the stewards of Africa’s destiny: Courts and contracts. Public finance and governance. Digital trust. Environmental and social governance. Justice and economic development.
These are living systems that depend on you, your judgment, voice, integrity, and daily commitment to uphold the law and defend the public good.
We must collectively strengthen constitutionalism, insist on accountability in the use of public funds, and strengthen the legal system and the judiciary.
We must champion environment, sustainability and governance principles, ensure that courts have suitable quality infrastructure, digitize our courts, build digital trust, and reform and uphold the ethics of the legal profession.
As we strive to do this, while strengthening a just, fair, independent and incorruptible judiciary, the benefits for societies will be immense across the continent:
Africa will attract the capital it needs.
Businesses will flourish in trust.
Justice will cease to be a privilege, and become a right, delivered to all.
And development will no longer be a distant promise, but a daily reality in the lives of people.
And this will be true, not only for Kenya, but for all of Africa.
When Africa stands for the rule of law, the world will stand with Africa.
Let us make a choice that history will record, and generations will remember.
Kenya is watching. Africa is waiting. The future is calling.
And it is you, the lawyers, the judges, the arbitrators, who must answer that call.
Let us rise together, to build a stronger, freer, fairer, and more prosperous Africa.
Now, as lawyers, justices and guardians of the law, I urge you to uphold the rule of law. I urge you to execute justice with fairness and righteousness.
For we are created equal before God, the lowly and the rich, the weak and the powerful.
And at the end of time, when we all stand in judgment before God the creator of all, we should do so, with clean conscience that we dispensed justice rightly, justly, with equity, protecting the weak and defending what is right for our nations.
May we have the courage, always, to do the right thing.
And may history judge us right!
Thank you very much.
Asanteni sana. Mungu awabariki.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
