IMF launches governance review in Kenya to address corruption, boost economic performance

Nairobi: The International Monetary Fund (IMF) began an official review of Kenya’s corruption and governance issues, a senior Kenyan official said.

The findings of the technical assessment will enable the government to implement priority governance reforms to fight corruption and support economic growth, Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi said on Monday in a statement issued in the Kenyan capital of Nairobi after a meeting with Rebecca A. Sparkman, deputy division chief at the Fiscal Affairs Department of the IMF.

Mudavadi welcomed the IMF’s response to the Kenyan government’s request for a Governance Diagnostic Assessment, starting with a scoping mission and then a full assessment later in the year.

The move to invite the IMF team came after Kenyan President William Ruto, under pressure from young protesters demanding accountability, promised to propose changes to the relevant law in July 2024 to seal the loopholes that undermine the fight against corruption, Xinhua news agency reported.

Ruto said the legal amendments would include cracking down on corrupt officials and those displaying opulence and wastage in government spending amid the high cost of living.

The IMF has urged Kenya to intensify efforts to tackle budgetary and economic challenges following taxation reforms that sparked mass protests in June 2024.

Sparkman said the scoping mission will examine corruption vulnerabilities in six core areas: fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and anti-money laundering and combating terrorism financing.

–IANS