In a move aimed at addressing public concerns and ensuring transparency in the country’s financial affairs, Kenya’s auditor general has commenced a comprehensive examination of the nation’s debt. This development comes on the heels of widespread protests that forced the government to abandon planned tax increases and amidst a series of credit downgrades from major global rating agencies.
Finance Minister John Mbadi announced the start of the audit in an interview with Reuters on Monday. While the exact scope of the investigation and the anticipated timeline for the release of the report remain unclear, the audit is expected to provide a detailed breakdown of Kenya’s debt obligations to various creditors.
The decision to launch the audit was a key demand of the anti-tax hike protesters who took to the streets in June, expressing their discontent with the government’s fiscal policies. The protests turned violent, resulting in the tragic loss of over 50 lives and forcing President William Ruto to abandon the government’s financing law.
The auditor general, an independent office established by the Kenyan constitution, is tasked with overseeing the country’s public finances. The audit is being conducted under the oversight of this constitutional body, ensuring its impartiality and credibility.
Initially, President Ruto appointed a committee to carry out the debt audit. However, several key figures, including the head of the Law Society of Kenya, declined the appointments, arguing that the task should be entrusted to the auditor general to maintain public trust.
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During his parliamentary vetting for the position of Finance Minister, John Mbadi had pledged to enhance debt accountability and transparency. The launch of the audit is a step towards fulfilling this promise and providing the public with a clearer understanding of the country’s financial situation.
The protests and subsequent credit downgrades have placed significant pressure on Kenya’s economy. The country is currently seeking to secure a disbursement of $600 million from the International Monetary Fund (IMF) as part of its ongoing economic program.
A team from the IMF is currently in Kenya on a fact-finding mission to assess the country’s economic progress and determine whether it meets the necessary conditions for the disbursement. The outcome of this IMF review will have a significant impact on Kenya’s ability to access international financing and manage its debt obligations.
As the debt audit unfolds, the Kenyan public will be closely watching for its findings and recommendations. The results of the investigation could have far-reaching implications for the country’s economic future and its ability to address the challenges posed by its growing debt burden.
