UPDATE 1-Kenya asks IMF to review corruption issues after Western push, sources say

(Adds IMF comment in paragraphs 3-4)

NAIROBI, Oct 3 (Reuters) – Kenya’s government has asked the International Monetary Fund to conduct an official assessment of corruption and governance issues, two sources familiar with the situation told Reuters, after a push by Western nations.

The countries themselves must request the IMF’s so-called “governance diagnostic”, which investigates whether corruption and governance vulnerabilities are draining revenue or creating other problems in state finances.

“We have encouraged the (Kenyan) authorities in the past, and we continue to encourage them to request a governance diagnostic,” said IMF spokesperson Julie Kozack in a scheduled press briefing in Washington.

“Promoting good governance remains an essential part of the IMF engagement with the Kenyan authorities.”

Kenya has struggled with debt that has reached precarious levels in recent years, and its withdrawal of proposed tax hikes earlier this year – following deadly protests – complicated its efforts to unlock a $600 million disbursement from the IMF.

One of the sources said the assessment, while not directly linked to the disbursement, would be a show of goodwill in the country’s efforts to get its finances back on track.

Perceived government waste and corruption were a core driver of the June demonstrations.

Kenya’s finance ministry did not immediately respond to requests for comment.

Reuters on Tuesday first reported that Western nations were pushing for the IMF assessment.

(Reporting by Aaron Ross; additional reporting by Rodrigo Campos; Writing by Duncan Miriri; Editing by Libby George and Andrea Ricci)

(c) Copyright Thomson Reuters 2024. Click For Restrictions – https://agency.reuters.com/en/copyright.html