Kenya Seeks IMF Assessment Amid Corruption Concerns

Kenya's government has requested an International Monetary Fund (IMF) assessment of corruption and governance issues, following pressure from Western nations. The evaluation aims to determine if corruption affects state finances. This move comes after Kenya's recent withdrawal of proposed tax hikes amid financial challenges.

Kenya's government has officially sought the International Monetary Fund's scrutiny over issues of corruption and governance, following concerted pressure from Western nations, according to sources. The request signals a proactive approach, as countries must themselves initiate the IMF's 'governance diagnostic'. This process analyzes potential revenue drains and vulnerabilities within state finances attributed to corruption.

In recent times, Kenya has grappled with dangerously high debt levels. The situation was further complicated when the government withdrew proposed tax increases earlier this year, after facing lethal protests. This retraction hindered Kenya's capacity to access a $600 million IMF disbursement. Although one source indicated the assessment isn't directly connected to the financial release, it represents a gesture of goodwill to align Kenya's finances positively.

The protests in June were primarily fueled by public perceptions of government excess and corruption. As of publication, both the IMF and Kenya's finance ministry have refrained from commenting. Reuters initially disclosed the Western nations' push for this IMF evaluation on Tuesday.

(With inputs from agencies.)