International donors Tuesday refused to renew funding to Kenya and pressed the government to intensify its war on corruption and implement delayed reforms, reports the World Bank press review.
At the end of a two-day a meeting to reschedule unmet aid pledges and tap fresh ones, outgoing World Bank representative in Kenya Makhtah Diop said new funding was made conditional on the Nairobi Governments commitment to reforms.
Faced with the wrath of donors, the government presented a two-year action plan in a bid to refresh its often repeated commitment to promote good governance and kickstart the faltering economy.
Donors, who have estimated that graft has cost the government up to a billion dollars since 2002, nearly a fifth of the countrys 2004-2005 official government spending of about 5,5 billion dollar, welcomed the plan.
Officials said donors would not unlock their cash flow until old conditions were met. Among them is passing laws on government procurement, financial management in the treasury, privatization of state-owned firms, and prosecuting corrupt officials.
The Standard (Kenya) reports that the government Tuesday agreed to a long list of conditions it must meet in the next one year before it can get more money from donors. Sources say that the government agreed to fast track the implementation of a five-point strategy that should pave the way for the promised budgetary support.
This includes:
– Enactment of legislation to establish a legislative platform on which to anchor the war on corruption;
– Vigorous enforcement of anti-corruption laws through investigation of corruption offences and economic crimes, as well as recovery of corruptly acquired property;
– Identification and sealing of loopholes through institution of effective public sector management controls;
– National public education aimed at stigmatizing corruption and inducing behavioral change;
– Implementing macroeconomic and structural reforms to reduce the incidence and demand for corruption by scaling down the role of the public sector and bureaucracy.
The donors are also asking the government “to engage in regular dialogue with parliament, civil society, the private sector and the international community.”
Meanwhile, the International Monetary Fund (IMF) and the European Union (EU) on Tuesday ruled out possibilities of offering Kenya a new debt breather or rescheduling some of its 9,5 billion dollar foreign debt until next year.
Kilde: www.worldbank.org
