The International Monetary Fund (IMF) set strict demands and conditions for the recently approved Ksh 255 billion credit facility advanced to Kenya.
According to a press release from IMF on Tuesday, April 6 - the same day petitions to cancel the loan hit 200,000 signatures - Kenya will have to comply or risk consequences.
The loan will be given in phases within three years and reviews will also be conducted to ensure compliance.
One of the conditions Kenya has agreed to comply with include enforcing wealth declarations for all public servants to curb corruption. This despite previous efforts by the government yielding little fruit.
“We have noted the vulnerability of the financial sector to the risks posed by laundering of the proceeds of corruption, and we will, therefore, continue to use AML/CFT measures to support anti-corruption efforts.
“We will continue to support efforts of the Financial Reporting Centre (FRC) towards encouraging and strengthening the use of financial intelligence to trace proceeds of corruption by sharing relevant financial intelligence with law enforcement agencies,” Kenya pledged.
In order to prevent the misuse of companies to launder the proceeds of crimes, including corruption, Kenya also agreed to ensure that all companies are required to submit accurate, complete and updated beneficial ownership information to the Registrar of Companies.
Part of the Ksh255 billion credit facility is supposed to help address the weaknesses affecting state-owned companies (SOEs) in dire need of financial assistance.
IMF has demanded that reforms be instituted in selected parastatals to return them into profit-making or improve their efficiency.
“The fund-supported program will also advance the broader reform and governance agenda, including by addressing weaknesses in some state-owned enterprises (SOEs) and strengthening transparency and accountability through the anti-corruption framework,” reads a statement from the international lender.
A financial evaluation of the nine SOEs with the largest fiscal risks to the financial year 2020/21 budget will be completed in 2021.
The evaluation will cover Kenya Airways, Kenya Airports Authority, Kenya Railways Corporation, Kenya Power, Kenya Electricity Generating Company, Kenya Ports Authority and the three largest public universities.
