Kenya has formally requested the International Monetary Fund (IMF) to conduct an in-depth assessment of how corruption and mismanagement are crippling the nation’s public finances. This move follows growing internal and external pressure for reforms, particularly after mass protests in September, where demonstrators stormed parliament demanding government accountability.
Although countries must request the audit, known as a “governance diagnostic,” western governments had previously urged Kenya to pursue this assessment. The audit is seen as crucial for Kenya to complete a long-overdue review of a $3.6 billion financing program and unlock a vital $600 million disbursement, according to diplomats in Nairobi.
Treasury Principal Secretary Chris Kiptoo confirmed the request, stating, “We have asked for a diagnostic assessment to get an independent evaluation of corruption vulnerabilities and governance weaknesses in critical areas.” He emphasized that the request was not directly related to the IMF program funding, though it could help improve Kenya’s governance and public finance management.
The key focus areas for the assessment include anti-money laundering, combating terrorism financing, central bank governance, financial sector oversight, tax policy, revenue administration, state enterprise management, public procurement, and public finance management. Kiptoo added, “We will use the outcome of this assessment to enhance future governance decisions.”
Kenya ranks 126th out of 180 on the Transparency International Corruption Index. While international observers are optimistic about the request, local diplomats noted that the audit is unlikely to immediately impact fiscal targets tied to Kenya’s IMF reform program. However, it could lead to improved fiscal discipline by reducing waste and mismanagement of state resources.
Kenya joins at least 14 other countries, including ten in Africa, that have undergone similar IMF evaluations. In Sri Lanka, the IMF’s post-audit recommendations included publishing asset declarations of top officials and creating a public website for procurement contracts above a certain value. The Kenyan government hopes for similar insights to curb corruption and strengthen its economic governance.
