Kenya launches national debt audit

Kenya has initiated a comprehensive audit of its national debt, Finance Minister John Mbadi announced on Monday. The audit aims to provide a clear picture of the amounts owed to various creditors.

The East African nation’s debt currently stands at 10.5 trillion shillings ($81.71 billion). The decision to conduct the audit follows widespread protests against proposed tax increases in June, which were ultimately abandoned by the government.

The auditor general, an independent state-funded office, has commenced the audit process. However, specific details regarding the scope of the investigation and the expected completion date remain undisclosed.

President William Ruto initially appointed a committee to conduct the audit, but several appointees declined due to concerns about the auditor general’s independence. Mbadi, during his parliamentary vetting, had pledged to enhance debt accountability and transparency.

The protests against the tax increases resulted in significant disruptions, leading to the deaths of over 50 people and forcing the government to abandon its financing law. These events also triggered credit downgrades from major global ratings agencies.

In light of these developments, a team from the International Monetary Fund (IMF) is currently in Kenya on a fact-finding mission. The IMF’s board meeting is scheduled to review Kenya’s economic program and consider approving a disbursement of $600 million.

Attribution: Reuters