IMF Initiates Governance Review in Kenya to Combat Corruption and Enhance Economic Performance
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Synopsis
The IMF has initiated a comprehensive review of Kenya's corruption and governance practices, aiming to support essential reforms for fighting corruption and enhancing economic growth. This assessment follows demands from citizens for greater accountability.
Key Takeaways
- The IMF is reviewing Kenya's governance to combat corruption.
- Priority reforms are needed to support economic growth.
- President Ruto plans legal amendments to address corruption.
- The review includes examining vulnerabilities in key governance areas.
- Public protests have pressured the government for accountability.
Nairobi, March 4 (NationPress) The International Monetary Fund (IMF) has officially commenced a review concerning corruption and governance issues in Kenya, according to a senior official from the Kenyan government. The outcomes of this technical evaluation will assist the government in executing essential governance reforms aimed at tackling corruption and fostering economic growth, stated Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi on Monday in a declaration made in Nairobi after a meeting with Rebecca A. Sparkman, deputy division chief at the Fiscal Affairs Department of the IMF.
Mudavadi expressed his appreciation for the IMF's affirmative response to the Kenyan government's request for a Governance Diagnostic Assessment, beginning with a scoping mission followed by a comprehensive assessment later this year.
This initiative to engage the IMF team emerged after Kenyan President William Ruto, facing pressure from young demonstrators demanding transparency, vowed to propose amendments to pertinent laws in July 2024 to address loopholes that hinder the fight against corruption, as reported by Xinhua news agency.
Ruto indicated that the legal modifications would target corrupt officials and those exhibiting extravagance and wastefulness in governmental expenditures amidst the escalating cost of living.
The IMF has called for Kenya to amplify efforts to confront budgetary and economic challenges following taxation reforms that ignited widespread protests in June 2024.
Sparkman mentioned that the scoping mission will scrutinize corruption vulnerabilities in six critical areas: fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and anti-money laundering and combating terrorism financing.
