Kenya Requests IMF Assessment on Corruption and Governance

Saturday October 05, 2024 - 12:27:16

0 Comments

713

Staff Reporter

Nairobi (diplomat.so) – The Kenyan government has formally asked the International Monetary Fund (IMF) to conduct an official assessment of corruption and governance issues, following pressure from Western nations. The IMF confirmed the request, which aims to investigate governance vulnerabilities that may be draining the country's resources and affecting state finances. This request comes amid Kenya's ongoing efforts to tackle high levels of debt and improve economic stability.

Kenya has been grappling with escalating debt, compounded by its withdrawal of proposed tax hikes earlier this year after widespread protests turned deadly. The reversal of these tax measures has further complicated the government’s efforts to secure a $600 million disbursement from the IMF. While the governance assessment is not directly tied to this disbursement, it is viewed as a step toward restoring confidence in Kenya’s financial management.

An IMF spokesperson confirmed the request for a governance diagnostic, stating that the Kenyan government seeks to strengthen its anti-corruption and governance policies. "They intend to utilize these diagnostics to enhance public spending efficiency, boost competitiveness, foster growth, and reduce poverty in an inclusive manner," the spokesperson said. This assessment is expected to provide a clearer understanding of how corruption may be impacting Kenya's fiscal health.

Mass protests in June, fueled by public anger over perceived government corruption and waste, led President William Ruto to scrap $2.7 billion in planned tax hikes. This setback has intensified Kenya's need for financial assistance. However, the country's finance ministry has yet to respond to requests for comment on the IMF's upcoming assessment.