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World Bank: Corruption Is Draining Funds Meant for Essential Services

Kenya has been urged to strengthen its fight against corruption after the World Bank tied a new lending programme to the implementation of key governance reforms aimed at improving accountability and the management of public resources.

The financial institution approved the latest financing package on June 29 after months of delays linked to concerns over the government’s progress in addressing corruption and strengthening public financial systems.

Speaking on Thursday, World Bank Country Director for Kenya Qimiao Fan said weak oversight and corruption continue to deny citizens essential public services by diverting resources meant for development.

“Every shilling lost to weak controls, to corruption, to poor procurement means a shilling not to going to schools, roads or health clinics,” Fan said.

He outlined four major reforms the World Bank expects Kenya to implement as part of the agreement.

These include enforcing conflict-of-interest rules for public officials, introducing a fully electronic procurement system to improve transparency in public tenders, establishing a single Treasury account to enhance monitoring of government finances, and passing the long-delayed Whistleblower Protection Bill.

Although some progress has been made, Fan acknowledged that implementing some of the measures, particularly the conflict-of-interest regulations and the whistleblower legislation, could face resistance.

He said the reforms are necessary to restore public confidence and support economic growth, noting that Kenyans have increasingly demanded greater accountability from leaders.

“The 2024 protests showed that Kenyans are demanding… fair and transparent fiscal management that delivers quality public services,” he said.

Fan added that citizens cannot be expected to shoulder a heavier tax burden without assurance that public funds are being used responsibly.

“You can’t ask citizens to tighten their belts without proof that money they contribute through taxes is being managed honestly, efficiently and for the public good,” said Fan.

The World Bank’s latest economic assessment shows Kenya’s economy expanded by 4.6 percent, but the country continues to grapple with rising public debt and limited formal employment opportunities for its growing population.

The lender maintains that stronger governance, greater transparency and effective anti-corruption measures will be critical in improving service delivery, restoring public trust and supporting sustainable economic growth.

Clare Ochieng'

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