IMF begins governance assessment to tackle corruption risks in Kenya

Prime CS Musalia Mudavadi (centre) with IMF’s Deputy Division Chief Rebecca A. Sparkman and other officials at the launch of the IMF Governance Diagnostic Assessment Scoping Mission for Kenya. (Photo: X/ Musalia Mudavadi)

By Lucy Mumbi
Monday, March 3, 2025

Mudavadi urged the IMF team to engage various stakeholders, including officials from the national and county governments.

The government has initiated a governance diagnostic assessment by the International Monetary Fund (IMF) to identify corruption risks that could undermine Kenya’s economic performance.

Prime Cabinet Secretary Musalia Mudavadi launched the assessment on Monday, highlighting the government’s commitment to transparency and accountability.

More To Read

The assessment will begin with a scoping mission before a full review later in the year.

Mudavadi said the National Treasury will serve as the focal point for the assessment.

Speaking during a meeting with Rebecca A. Sparkman, the IMF’s Division Chief for Revenue Administration and Fiscal Affairs, Mudavadi emphasised that the findings will help the government implement priority governance reforms aimed at supporting economic growth.

“The government has taken numerous steps to enhance governance, but challenges such as corruption and conflicts of interest persist. We remain committed to transparency and accountability,” Mudavadi said.

He also highlighted budgetary constraints following the withdrawal of the Finance Bill, 2024 in June last year, which was met with protests from the youth over proposed tax increases.

Mudavadi urged the IMF team to engage various stakeholders, including officials from the national and county governments, the Judiciary, Parliament, the private sector, civil society, and faith-based organizations, to ensure a comprehensive assessment of the factors hindering economic growth and social transformation.

“A robust stakeholder engagement process, focused on institutions and systems, is crucial in addressing the sensitivities and expectations of a highly politicised and social media-connected society,” he added.

Sparkman noted that the scoping mission will examine corruption vulnerabilities in six key areas: fiscal governance, Central Bank governance and operations, financial sector oversight, market regulation, rule of law, and anti-money laundering and counter-terrorism financing.

A full assessment is set to begin in June this year.

“At the request of the Prime Cabinet Secretary, the IMF will share insights from similar assessments conducted in other countries. Since 2018, we have completed governance diagnostic reports for 20 nations, with 10 others in progress and several more under consideration,” Sparkman said.

Among those present at the launch meeting were National Treasury’s Director-General for Budget, Fiscal, and Economic Affairs Albert Mwenda and IMF’s Resident Representative in Kenya Selim Cakir alongside other IMF and government officials.