IMF probes Kenya’s governance in sweeping review set for October 2025 release

The International Monetary Fund (IMF) is currently conducting a diagnostic program to assess Kenya’s governance structures, with a final report expected by October 2025.

This comprehensive review will uncover the country's key governance challenges and propose solutions that aim to strengthen areas such as revenue generation, public spending, procurement, fiscal management, and the rule of law.

National Treasury Cabinet Secretary John Mbadi, speaking about the ongoing project, expressed confidence that the final assessment will be made public without hesitation.

The programme, initiated by the Kenyan government, aims to identify and address critical gaps in the country’s governance framework.

According to Mbadi, the IMF’s involvement is part of a broader effort to equip the government with the necessary tools to improve efficiency and transparency in public affairs.

"The government of Kenya requested government diagnostics from the IMF, which is a normal practice in many jurisdictions. Many countries have sought such. IMF is an institution that helps countries or economies to stabilise," Mbadi said.

Civil society groups are closely monitoring the programme, viewing it as an essential step in restoring accountability within Kenya's governance structures.

TISA Executive Director Diana Gichengo emphasised the importance of the diagnostic in ensuring the IMF’s credibility in Kenya following the perceived failure of its previous programmes.

“For IMF to regain its legitimacy in Kenya, they need a governance diagnostic based on what happened and the outright failure of their most recent programme. They now have no choice but to go deeper and wider beyond just fiscal measures,” Gichengo said as reported by Citizen Digital.

She further noted that the IMF’s findings will rely on diverse sources, including reports from the Auditor General, the Ethics and Anti-Corruption Commission (EACC), the Controller of Budget, and civil society organisations.

Despite the broad support for the programme, concerns have emerged over potential government interference in the process.

Gichengo warned that the government must not manipulate the findings to present an overly positive image.

“Because of the political governance in the fiscal space, we are perceived as irresponsible borrowers, an irresponsible spender, and a country with very low accountability standards,” she stated.

Dr Abraham Rugo, the executive director of Bajeti Hub, expressed scepticism about the novelty of the IMF's findings, suggesting that much of the information might already be available through local audits and reports.

However, he emphasised that political goodwill would be crucial for the programme’s success.

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“The interesting bit of it that will be interesting to watch is how different it will be from what the EACC has already revealed, what the Auditor General has already revealed. There are enough reports,” Rugo observed as quoted by Citizen Digital.

One of the major concerns voiced by experts is the potential impact of the IMF's findings on Kenya’s international financial standing.

A negative report could complicate the country's access to foreign funding.

"The outcome should be that we have an agreed position, but largely it’s the international bodies, both public and private, that use that to assess their risk exposure and investment in Kenya," Rugo said.

In response, Mbadi stated that while he does not foresee a reason to keep the report private, the decision ultimately rests with the Cabinet.

“I was very careful to say, from where I sit, I didn't see what that should not be made public, but that will be a Cabinet decision,” Mbadi said.

Experts agree that the success of the IMF governance diagnostics will hinge on the government's willingness to fully disclose relevant information and act on the recommendations provided.