Kenya asks IMF to review graft issues after push from Western nations

The Kenyan government has asked the International Monetary Fund (IMF) to conduct an official assessment of corruption and governance issues, the IMF told Reuters, after a push by Western nations.

Kenya has struggled with debt that has reached precarious levels in recent years, and its withdrawal of proposed tax hikes earlier this year — following deadly protests — complicated its efforts to unlock a $600 million (Sh7.7 billion) disbursement from the IMF.

Countries themselves must request the so-called "governance diagnostic", which investigates whether corruption and governance vulnerabilities are draining revenue or creating other problems in state finances.

“We have received a governance diagnostics request from the authorities," an IMF spokesperson said in response to written questions.

"The government of Kenya aims to strengthen its governance and anti-corruption policies. They intend to utilise these diagnostics to enhance public spending efficiency, boost competitiveness, foster growth, and reduce poverty in an inclusive manner.”

One source familiar with the situation said the assessment, while not directly linked to the disbursement, would be a show of goodwill in the country's efforts to get its finances back on track.

Perceived government waste and corruption were a core driver of mass demonstrations in June that forced President William Ruto to withdraw $2.7 billion (Sh348.5 billion) in planned tax increases.

Kenya's finance ministry did not respond to requests for comment.

Reuters on Tuesday first reported that Western nations were pushing for the IMF assessment.