by Nurat Uthman
Kenya’s government has asked the International Monetary Fund to conduct an official assessment of corruption and governance issues, the IMF told Reuters, after a push by Western nations.
Kenya has struggled with debt that has reached precarious levels in recent years, and its withdrawal of proposed tax hikes earlier this year – following deadly protests – complicated its efforts to unlock a $600 million disbursement from the IMF.
Countries themselves must request the so-called “governance diagnostic”, which investigates whether corruption and governance vulnerabilities are draining revenue or creating other problems in state finances.
“We have received a governance diagnostics request from the authorities,” an IMF spokesperson said in response to written questions.
“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.”
According to a source, the assessment, while not directly linked to the disbursement, would be a show of goodwill in the country’s efforts to get its finances back on track.
Perceived government waste and corruption were a core driver of mass demonstrations in June that forced President William Ruto to withdraw $2.7 billion in planned tax increases.
