IMF boss calls for reforms to combat graft

President William Ruto with International Monetary Fund Deputy Managing director Nigel Clarke at the State House in Nairobi on December 09, 2024. [PCS, Standard]

The International Monetary Fund (IMF) has asked the Kenya Kwanza administration to address corruption and strengthen public trust in government institutions.

Despite acknowledging the progress made by President William Ruto’s government through the IMF’s financial support programme, the global lender pointed out that Kenya faces significant challenges, particularly in fiscal management and debt sustainability. 

The IMF Deputy Managing Director Nigel Clarke made the comments after concluding his Kenyan visit midweek. 

Clarke’s visit, which took place from December 8 to 10, included meetings with President Ruto, Cabinet Secretary for National Treasury John Mbadi, and Central Bank Governor Kamau Thugge, among other officials.

He highlighted that while the Ruto government aims to meet the aspirations of its citizens, heavy debt servicing obligations hinder its ability to invest in crucial social services.

Clarke stressed the importance of creating fiscal space for priority investments, urging the government to prioritise transparency and accountability. “Strengthening public financial management and anti-corruption frameworks is essential for ensuring that revenues are effectively spent,” he said. 

Mr Clarke underscored that these measures are vital not only for economic resilience but also for fostering public confidence in government institutions. The IMF had earlier said that governance concerns by the Ruto regime had been central to the delays in releasing funds to the Kenyan government under its financial programme.

The bilateral lender previously urged Kenya to initiate governance diagnostics — a process aimed at pinpointing areas for improvement in governance practices.

“While governance reforms can take time, promoting good governance is essential to our engagement with Kenyan authorities,” said Ms Julie Kozack, Director of the Communications Department at the IMF previously.