The International Monetary Fund (IMF) has announced that it will begin to investigate how corruption is sapping Kenya’s public finances from early next year.
Speaking during a visit to Kenya, where he met senior government officials, including President William Ruto, Treasury Cabinet Secretary John Mbadi, and Central Bank Governor Kamau Thugge, IMF Deputy Managing Director Nigel Clarke stated that the Fund would send a team to carry out what he described as a “governance diagnostic.”
Clarke said the mission team will engage a diverse range of stakeholders to identify governance shortcomings within Ruto’s administration and suggest possible improvements.
“It will allow a road map to emerge, a road map of reforms that can be incorporated over time with a view of improving governance outcomes in Kenya,” the IMF Managing Director noted.
He reiterated that the IMF viewed governance issues as being of great significance adding that if such are not taken care of they could have profound effects on the country’s macroeconomic outcomes.
While responding to criticism over the IMF’s engagement with Kenya, Clarke distanced the Fund’s involvement in the country's rigorous tax regime saying the IMF’s role was only to offer advice for the government to make informed decisions.
“Specific revenue measures are not the design of the IMF, the specific revenue choices made are totally within the purview of the Kenyan government. The IMF is not involved in making specific decisions to specific taxes,” Clarke said.
On October 3, the government wrote to the IMF requesting an assessment of corruption and governance issues. While addressing the press, IMF Spokesperson Julies Kozac said the Fund had received a formal request from Ruto's administration for a 'governance diagnostic.'
"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 inclusively reduce poverty," Kozac said in a presser.
President Ruto’s administration has in recent years faced criticism for failing to deal with corruption. In 2024, Kenya was ranked 126 out of 180 in Transparency International’s Global Corruption Perceptions Index.
In June, Kenyans took to the streets to protest the government's decision to introduce a raft of tax measures that would raise the prices of essential commodities including the price of bread and milk.
While demonstrating, Kenyans accused government officials including Members of Parliament who they faulted for engaging in corruption that led to wastage of public funds. by
