IMF Steps in to Address Corruption in Kenya’s Public Finance
The International Monetary Fund (IMF) has announced plans to begin examining how corruption is impacting Kenya’s public finances starting early next year.
During a visit to Kenya, IMF Deputy Managing Director Nigel Clarke met key government officials, including President William Ruto, Treasury Cabinet Secretary John Mbadi, and Central Bank Governor Kamau Thugge.
Clarke revealed that the IMF would dispatch a team to conduct what he termed a “governance diagnostic” aimed at identifying weaknesses in Kenya’s public administration and proposing reforms.
“This will create a road map for implementing reforms over time to improve governance outcomes in Kenya,” Clarke explained.
Clarke emphasized the IMF’s commitment to addressing governance issues, stating that poor governance could significantly harm Kenya’s economic stability.
In response to criticism of the IMF’s role in Kenya, Clarke clarified that the organization does not dictate the country’s tax policies. “The IMF’s involvement is purely advisory. Decisions regarding specific taxes are made entirely by the Kenyan government,” Clarke asserted.
Earlier this year, on October 3, President Ruto’s administration formally requested the IMF to assess corruption and governance challenges. IMF Spokesperson Julies Kozac later confirmed this, stating, “The Kenyan government aims to enhance governance and anti-corruption frameworks to improve public spending efficiency, foster growth, and reduce poverty inclusively.”
Kenya has long struggled with corruption, and the current administration has faced mounting criticism for its inaction. Transparency International ranked Kenya 126th out of 180 countries in its 2024 Global Corruption Perceptions Index.
The government’s introduction of new tax measures earlier this year, which raised the prices of basic items like bread and milk, triggered protests across the country. Citizens accused leaders, including Members of Parliament, of mismanaging public funds and allowing corruption to thrive.
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IMF Steps in to Address Corruption in Kenya’s Public Finance
