Amid public outrage and with more than 200,000 people signing a petition to compel the International Monetary Fund (IMF) to recall its loan of Ksh 255 Billion, the body has set strict demands and conditions for the credit facility advanced to Kenya.
In a press release dated 06 April 2021 on a day that saw Kenyans take to IMF’s social media pages in anger and with more than 200,000 signatures, Kenya has been given several strict conditions that it has to comply with or riskj consequences.
The Ksh 255 Billion credit will be issued in phases over the next three years with periodic reviews to ensure compliance.
Under IMF terms, Kenya is expected to enforce wealth declaration measures on all State employees as a means of curbing runaway corruption.
“We have noted the vulnerability of the financial sector to the risks posed by laundering of the proceeds of corruption, and we will, therefore, continue to use AML/CFT measures to support anti-corruption efforts.
Kenya committed to “continue to support efforts of the Financial Reporting Centre (FRC) towards encouraging and strengthening the use of financial intelligence to trace proceeds of corruption by sharing relevant financial intelligence with law enforcement agencies.”.
In the past, companies have often been used as conduits for corruption and money laundering, including proceeds of crimes and corruption.
To handle this, Kenya has committed to ensure that all companies are required to submit accurate, complete and updated beneficial ownership information to the Registrar of Companies.
“The fund-supported program will also advance the broader reform and governance agenda, including by addressing weaknesses in some state-owned enterprises (SOEs) and strengthening transparency and accountability through the anti-corruption framework,” reads a statement from the international lender.