Kenya has formally invited the International Monetary Fund to conduct an extensive audit of corruption and governance, aimed at what many have termed as entrenched graft that is harmful to the economy and the people’s livelihood.
The IMF had demanded this audit before releasing new funding amounting to Ksh77.5 billion.
This follows an earlier move by President William Ruto to withdraw the controversial Finance Bill 2024 that sought to increase taxes by Ksh346 billion.
“We need to take the fight against corruption a notch higher,” said Prime Cabinet Secretary Musalia Mudavadi. He spoke on Monday at the Kenya Revenue Authority Summit 2024 in Nairobi.
“The war on corruption has taken so long. We must ask ourselves where corruption is domiciled so that we tackle it head-on.
Mudavadi urged all government officers to take the audit exercise seriously.
“Those who do not participate will still be scrutinised,” he warned, emphasizing the diagnostic exercise’s importance.
He confirmed that the audit will encompass every ministry and government institution.
“In our volution, we have requested a governance and corruption diagnostic, and I signed off on that request on behalf of the government of Kenya,” he insisted.
So far, the IMF has not commented on the approval for the audit. Meanwhile, Mudavadi emphasized the requirement of KRA widening the tax base without overtaxing citizens.
This, he said was because expanding the tax net would realize a better percentage revenue collection and protect the citizens from abnormal taxation. “We need a balanced approach to taxation,” said Mudavadi.
Mudavadi said that trade facilitation was crucial to ensure economic growth during his keynote speech at the Africa Customs and Trade Conference.
He called upon African countries to cooperate on an intensive basis concerning measures that nurture a business-friendly environment.
Those present at the summit included John Mbadi, Cabinet Secretary for National Treasury and Economic Planning, and Anthony Mwaura, Chair of the KRA Board of Directors.
