Kenya's plans to secure a new financing programme from the International Monetary Fund have hit a temporary roadblock as the government waits to review a comprehensive assessment that examined governance and corruption weaknesses across the country's critical sectors.
The negotiations, which were expected to move forward following Kenya's exit from its previous IMF funding arrangement earlier in the year, have now been paused pending official feedback from the government on the lender's findings.
This delay means discussions around the next phase of Kenya's relationship with the multilateral institution remain incomplete even as the country continues to seek additional financial support.
The assessment that is now holding up progress was quite broad in scope. The IMF examined how Kenya manages public procurement, handles public finances, administers taxes, and regulates its mining sector and markets.
The review also looked into how the Central Bank is governed and whether the country's anti-money laundering measures are sufficient. The overall aim was to identify weak spots in Kenya's governance systems and pinpoint areas where corruption could take root and damage the economy.
Government officials have confirmed that the draft report from this assessment was recently handed over to Kenya's authorities for their consideration.
Treasury Cabinet Secretary John Mbadi and Central Bank Governor Kamau Thugge have both acknowledged that Kenya is in talks with the IMF about a new loan arrangement to support the country's finances.
This assessment will likely play a significant role in shaping what conditions come with that new deal.
The groundwork for this review began when Kenya formally asked the IMF for technical help with governance issues. The actual assessment mission took place over two weeks, between mid-June and the end of June this year, with a team of IMF experts meeting with various Kenyan officials and examining the country's systems and practices.
What makes this situation somewhat sensitive is that the final report cannot be made public without approval from President William Ruto's administration.
This means the findings, which could potentially be critical of how Kenya manages its public affairs, remain confidential until the government gives the green light.
The IMF has also indicated it is discussing the timing for its next annual review of Kenya's economy, known as an Article IV consultation, which will assess the overall health of the Kenyan economy.
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