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Kenya Accepts More Action Needed To End Graft – WB

Kenya is showing commitment to fight corruption that has strained relations with key donors but recognizes it still has more work to do to eradicate the problem, a senior World Bank official has said.

Juan Jose Daboub, the World Banks Managing Director, said that after meeting President Mwai Kibaki, business and politicians in Nairobi, he was convinced the east African country was working hard to tackle graft.

The World Bank, Kenyas leading lender, has delayed 265 million US dollar worth of aid to Kenya until it is satisfied that the government is committed to the fight against corruption.

Daboub said the World Bank was keen to proceed with the financing of development projects that it feels have transparent mechanism of monitoring and evaluation. As examples, he said the Bank was expected to forward to its board a 80 million dollar loan request for Kenyas education sector and also had approved a 60 million dollar credit to help Kenyans in the arid areas cope with the impact of a severe drought.

Daboub, who is visiting seven countries in Africa, said despite impressive economic growth, Kenyas potential for the private sector was impeded by poor infrastructure, rules that hamper trade in the region and a slow judiciary system.

Daboub, a former Salvadorian finance minister who took over as the banks managing director in July, has urged rich countries to dismantle trade subsidies to lift millions of Africans out of poverty.

The World Bank has recently come under sharp focus over stringent conditionalities it attaches to its aid to Africa, but Daboub defended the Banks position. – We do not like excess number of conditions but we want to make sure that some very basic ones are there and are met. In general, the conditions … are fair and necessary, he said.

Daboub lauded Kenyas newly unveiled economic blueprint, Vision 2030, which aims to achieve sustainable growth. – The World Bank stands ready to continue supporting the Government of Kenya to make Vision 2030 a reality, he said in Nairobi at the end of his visit.

Meanwhile, Kenyas Health Minister Charity Ngilu said the World Bank was to blame for some impediments in the improvement of the health services. The minister said nearly all programs financed by the World Bank have achieved little on the target results due to the delay in disbursement of pledged funds.

She accused the Bank of delaying and attaching conditions before releasing the money despite guarantees for repayment. The minister said the Health Ministry would soon initiate sourcing for grants as the only way of speeding up the implementation of health care projects without delay.

Kilde: www.worldbank.org