President William Ruto on Thursday declined to assent to the much-anticipated Conflict of Interest Bill 2025 and referred it back to Parliament.
The bill is part of the requirements the World Bank had placed on Kenya for further loan and development support, according to the global multilateral lender and Treasury Cabinet Secretary John Mbadi.
The development comes just less than a day after the World Bank showed good faith to Kenya and granted the government a Ksh77 billion (USD600 million) loan.
The World Bank had made the passage of the Conflict of Interest Bill a key condition for releasing approximately Ksh104 billion (USD800 million) in funding.
This legislative requirement was part of a broader set of governance reforms aimed at enhancing transparency and accountability within the Kenyan government, set by the Washington-based lender.
The referral of the bill to the Parliament is, however, likely to have a double impact on the economy, as it might motivate the World Bank to extend additional concessional facilities or hold onto the ones on the pipeline as they await the lawmakers to conclude on the same.
However, the State House, in a statement released on Thursday, asserted that the presidential action was from the failure of legislators to address critical aspects affecting Kenyans, such as graft and accountability.
''President William Ruto on Thursday morning referred the Conflict of Interest Bill 2025 back to Parliament for reconsideration,'' a statement from State House read in part.
''In his commitment to tackling graft, accountable leadership, and integrity in public service, the president has been urging Parliament to pass the Conflict of Interest Bill without delay. He, however, made it clear that he would veto any version of the Bill that failed to set a high standard for accountability, integrity, and anti-graft measures," the statement added.
According to the State House, while the bill as presented largely addressed the subject of conflict of interest, the president noted the need for further improvements to strengthen its provisions on transparency and enforcement to align it with the constitutional values of integrity and good governance.
Consequently, per Article 115 of the Constitution, Ruto referred the bill back to Parliament, with a memorandum, for reconsideration.
A successful reconsideration of the bill would likely trigger more loan offers from the World Bank. Treasury CS John Mbadi, while appearing before the National Assembly on Wednesday, April 16, also confirmed the government had secured the Ksh78 billion facility from the lender, set to be disbursed in June 2025.
"Doors are opening for external resources. The World Bank disbursement is coming in June," the CS affirmed, saying that the delays were largely because of the Conflict of Interest Bill, which was a pending issue.
Another loan of Ksh34.3 billion (USD265 million) will be unlocked in a week's time, according to Mbadi.
