Ruto Reluctant To Allow IMF Review Corruption Issues As Western Nations Step In
Major shareholders in the International Monetary Fund are urging Kenya to request an IMF assessment of corruption and governance concerns.
They insisted that this is a push to revive lending that has been stalled by the cancellation of tax increases, according to three sources.
The disbursement of approximately $600 million under an IMF plan that expires next year has been delayed since the government withdrew $2.7 billion in tax increases following mass protests.
The demonstrations, in which more than 50 people were killed, highlighted issues of corruption and misgovernance.
The young protesters claimed that their taxes were being used to fund politicians’ extravagant lifestyles.
According to the sources, Western governments have encouraged a governance diagnostic, or IMF assessment, of corruption and governance vulnerabilities.
Two diplomatic sources and one person familiar with the situation spoke on the condition of anonymity to discuss private conversations.
A governance diagnostic must be requested by the relevant country.
“We have encouraged the authorities in the past and continue to do so in requesting governance diagnostics,” the Fund told Reuters.
The Kenyan finance ministry did not respond to requests for comment. According to two sources, submitting a governance diagnostic request would facilitate discussions about additional IMF support.
The assessment would look at “where the leaks are, where the challenges are, where the problems are, and then propose solutions,” according to a source familiar with the situation.
Since 2014, the IMF has published governance diagnostic reports on 14 countries, including Ukraine, Cameroon, and Sri Lanka, with additional diagnostics currently underway, according to the Fund’s website.
Kenyan authorities are looking for new revenue-raising measures after canceling the tax increases.
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Finance Minister John Mbadi stated in August that the government would have to reinstate some provisions from the repealed bill.
Mbadi, on the other hand, announced last month that he would seek public input on new revenue-generating legislation.
According to diplomatic sources, the government must present a credible plan to reduce its fiscal deficit before the IMF considers new disbursements.
Ruto Reluctant To Allow IMF Review Corruption Issues As Western Nations Step In
