A snapshot captures the Nairobi Expressway in Nairobi, Kenya, on May 8, 2022. REUTERS/Thomas Mukoya/File Photo Purchase Licensing Rights
Kenya’s auditor general has embarked on a thorough examination of the nation’s debt, aiming to quantify what is owed to different creditors, Finance Minister John Mbadi revealed to Reuters on Monday.
In the heart of East Africa, Kenya’s debt is towering at 10.5 trillion shillings ($81.71 billion). The audit of these borrowings was a critical outcry from anti-tax hike demonstrators in June, leading the government to scrap several proposed tax increases.
“The investigation has commenced,” Mbadi stated without delving into specifics about the audit’s emphasis or the expected timeline for the report’s release.
The auditor general, an independent entity backed by the constitution and state funding, is at the helm of this scrutiny.
Amid the uproar of the protests, President William Ruto commissioned a special panel to conduct the audit. Nonetheless, prominent figures, including the head of the Law Society of Kenya, turned down their appointments, advocating that the auditor general should handle this crucial task.
During his parliamentary screening, Mbadi vowed to bolster debt accountability, aiming to enhance public comprehension of the debt predicament.
The protests turned lethal, claiming over 50 lives and compelling President Ruto to retract the government’s financing legislation.
This turbulence also triggered a flurry of credit downgrades from the trio of dominant global ratings agencies.
Currently, an International Monetary Fund delegation is in Kenya on a fact-finding mission, preceding a board meeting to green-light the latest review of Kenya’s fiscal program and approve a much-needed disbursement of $600 million.
(Exchange rate: $1 = 128.5000 Kenyan shillings)
Reporting by Duncan Miriri; Editing by Jacqueline Wong
