The IMF’s audit, led by the IMF’s African Department Director Abebe Aemro Selassie, aims to pinpoint areas of weakness and strengths within Kenya’s governance structure, while providing guidance on managing public finances more effectively.
In a press conference on Friday, October 25, Selassie confirmed the IMF’s commitment to Kenya’s audit request, emphasizing the importance of identifying governance shortcomings and promoting best practices.
“IMF has welcomed Kenya's request for a diagnostic assessment. We will be sending a team to analyze Kenya’s public accounting practices and examine both the areas that function well and those requiring improvement,” he stated.
Kenya’s proactive call for external oversight reflects growing internal and external pressure on President William Ruto's administration to address systemic corruption. Kenyan leaders have faced mounting demands from citizens, including youth protestors and advocacy groups, urging the government to adopt stronger accountability measures.
As part of the effort to assure the public and foster transparency, Prime Cabinet Secretary Musalia Mudavadi emphasized the need to thoroughly address corruption. “The war on corruption has taken a long time,” Mudavadi stated on October 8. “We must ask ourselves where corruption is domiciled so that we can tackle it head-on.”
At the IMF-World Bank annual meetings held in Washington D.C. on October 22, Kenyan Treasury Principal Secretary Chris Kiptoo and other officials discussed these challenges with the IMF, highlighting the Kenyan government’s commitment to creating more transparent fiscal systems. The Ruto administration has recognized that rooting out corruption is essential not only for improving governance but also for rebuilding public trust.
As IMF Director Selassie noted, effective public accountability and resource management are essential steps in creating a stable and trustworthy government. He emphasized that the Kenyan government must strive to demonstrate the effective and efficient use of taxpayer funds.
“Promoting transparency, showing to what purpose government resources are being used in a much more effective way than has been the case, would help in the long-run effort to generate tax revenue,” Selassie said.
Additionally, IMF officials stressed the importance of fiscal discipline amidst Kenya’s rising debt, advising that prudent borrowing practices be maintained to avoid unsustainable debt levels. Kenya, like many other countries, faces the risk of economic strain due to borrowing at high-interest rates, which can quickly outweigh national economic growth.
“If countries are borrowing at 8, 9, 10 percent for the entirety of their debt stock, soon you will face debt problems as this surpasses typical growth rates,” Selassie remarked.
The IMF team’s audit is expected to scrutinize Kenya’s financial practices, provide recommendations for governance reforms, and outline strategies to enhance transparency.
The Kenyan government has signaled its openness to these recommendations, which are anticipated to highlight critical areas for improvement within the country’s systems.
Furthermore, the Ruto administration’s stated commitment to implementing new legislative measures targeting corruption showcases the government’s desire to create lasting change.
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