Kenya’s government has asked the International Monetary Fund (IMF) to conduct an official assessment of corruption and governance issues, according to sources familiar with the situation.
This request comes after pressure from Western nations and amidst Kenya’s struggle with high levels of debt. The IMF’s “governance diagnostic” investigates whether corruption and governance vulnerabilities are draining revenue or creating other problems in state finances.
IMF spokesperson Julie Kozack confirmed that the organization has been encouraging Kenyan authorities to request this assessment, emphasizing that promoting good governance remains essential in their engagement with Kenya.
The country’s recent withdrawal of proposed tax hikes, following deadly protests, complicated its efforts to unlock a $600 million disbursement from the IMF. While not directly linked to the disbursement, the assessment is seen as a show of goodwill in Kenya’s efforts to get its finances back on track. Perceived government waste and corruption were core drivers of the June demonstrations. Kenya’s finance ministry has not immediately responded to requests for comment.
The assessment could potentially influence future IMF support and Kenya’s economic policies. This development highlights the ongoing challenges Kenya faces in addressing corruption concerns and maintaining international financial support while navigating domestic political pressures.
The outcome of this assessment may have significant implications for Kenya’s economic future and its relationship with international financial institutions.