Kenya's Auditor General Initiates Debt Investigation Amidst Public Pressure

Kenya's auditor general has commenced an examination of the country's debt, addressing demands from anti-tax hike protesters. Finance Minister John Mbadi confirmed the audit which aims to bring debt accountability and understanding to the public. The audit follows the government's decision to halt planned tax increases due to protests.

Kenya's auditor general has started to examine the country's debt to ascertain the amounts owed to various creditors, Finance Minister John Mbadi told Reuters on Monday. The East African nation's debt stands at 10.5 trillion shillings ($81.71 billion) but an audit of the borrowings was one of the key demands of anti-tax hike protesters that forced the government to abandon a number of planned tax increases in June.

According to Finance Minister John Mbadi, the audit has commenced, although specific details on the investigation's focus or the report's expected completion date remain undisclosed. The auditor general's office, which is an independent entity funded by the state, is leading the probe.

In response to widespread protests, President William Ruto initially appointed a committee to conduct the audit. Several appointees, including the head of the Law Society of Kenya, declined the roles, advocating for the auditor general to carry out the task. During his parliamentary vetting, Mbadi vowed to enhance "debt accountability" to increase public transparency on the issue.

Over 50 fatalities occurred during the protests, compelling President Ruto to abandon the financing law. The unrest also resulted in a series of credit downgrades by major global ratings agencies. Meanwhile, an International Monetary Fund team is currently in Kenya for a fact-finding mission before the board meeting to approve a $600 million disbursement.

(With inputs from agencies.)