.@IMFNews has released Sh43.8B to Kenya, even as it acknowledged concerns among Kenyans that spending on Covid-19 procurements was riddled with corruption. - @NationAfrica
IMF executive board made the decision after assessing the government’s fiscal reforms regarding widening the tax base, measures to reduce debt vulnerabilities and the state of social spending, among other factors.
Under the 38-month arrangement, Kenya will borrow a total of $2.34B to address debt vulnerabilities, supporting response to Covid-19 and enhancing governance.
IMF addressed recently published Covid-19 audits that unearthed glaring corruption syndicates in the @Kemsa_Kenya and some county governments.
IMF said that though the audits had identified procurement violations, they had formed an important step in strengthening fiscal transparency and accountability in government.
One of the programme’s goals is adopting measures to promote greater transparency in public accounts and strengthening the anticorruption framework.
Speaking at the conclusion of the executive board’s meeting, IMF’s deputy managing director and acting chair, Antoinette Sayeh, pressured the government to follow up on the audits.
She noted that their publication, together with a recent requirement for companies awarded public tenders to disclose beneficial ownership information, would strengthen fiscal transparency and accountability in the use of public resources.
Among the actions taken by the government in line with its deal with the IMF are a two-year freeze on pay increases for civil servants and tax hikes, including on basic commodities.
The IMF argues that by consuming 22 per cent of the government’s total current spending and more than a third of tax revenues, the public sector wage bill must be contained.
The release of the Sh43B brings to Sh77B the total IMF disbursements for budget support under the arrangement. IMF, however, noted that until Covid-19 vaccinations are widely available, pandemic-related pressures would persist.
Another Kes44B budgetary support from @IMFNews bit.ly/3gXXPuo
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