The Kenyan government has asked the International Monetary Fund (IMF) to perform an official review of corruption and governance issues, according to an article by Reuters.
The move comes after Western nations pushed for the government to submit to the assessment to unlock financial support from the IMF.
Kenya has struggled with debt that has reached record levels in recent years. As of January 2024, Kenya’s public debt soared to Ksh11.2 trillion, accounting for 69.1% of the country’s GDP.
The withdrawal of tax hikes following protests against the unpopular Finance Bill 2024 complicated Kenya’s efforts to unlock a Ksh77.4 billion loan from the IMF.
Countries must request the “governance diagnostic” from the IMF. The process involves the investigation of whether governance and corruption vulnerabilities are draining revenue or creating challenges in state finance.
“We have received a governance diagnostics request from the authorities,” an IMF spokesperson told Reuters.
“The government of Kenya aims to strengthen its governance and anti-corruption policies. They intend to utilize these diagnostics to enhance public spending efficiency, boost competitiveness, foster growth, and reduce poverty in an inclusive manner,” the official further added.
Kenya’s acceptance of the governance diagnostic demonstrates the country’s efforts to improve its finances. Corruption and government waste were a primary cause of the mass demonstrations that forced President Ruto to withdraw Ksh348 billion in additional taxes.
On Tuesday, Reuters reported that Western nations, which are major stakeholders of the IMF, urged Kenyan authorities to request the governance diagnostic by the IMF.
