The World Bank has urged Kenya to fast-track sweeping anti-corruption reforms, warning that billions of shillings lost through corruption and weak public financial controls continue to deny citizens access to quality healthcare, education and infrastructure.
The warning comes after the World Bank approved a new lending programme for Kenya, having delayed its approval over concerns about the slow implementation of governance and anti-corruption reforms.
Speaking during the release of the World Bank’s latest Kenya Economic Update on Thursday, World Bank Country Director for Kenya Qimiao Fan said tackling corruption is critical to restoring public confidence and ensuring public resources are used for their intended purpose.
“Every shilling lost to weak controls, to corruption, to poor procurement means a shilling not going to schools, roads or health clinics,” Fan said.
Corruption remains one of Kenya’s biggest governance challenges, ranging from petty bribery to multi-billion-shilling procurement scandals. The issue has also fuelled growing public dissatisfaction, culminating in the nationwide anti-government protests witnessed in 2024.
According to the World Bank, Kenya must implement four key governance reforms to strengthen accountability and improve public financial management. These include stricter conflict-of-interest rules for public officials, the rollout of a fully electronic procurement system to enhance transparency in government tenders, the establishment of a Single Treasury Account to improve oversight of public finances, and the enactment of the long-delayed Whistleblower Protection Bill.
While acknowledging progress in some areas, Fan noted that implementing the conflict-of-interest regulations and securing parliamentary approval for the whistleblower legislation could face political resistance.
However, he stressed that the reforms are necessary to rebuild public trust and support sustainable economic growth.
“The 2024 protests showed that Kenyans are demanding fair and transparent fiscal management that delivers quality public services,” Fan said.
He added:
“You can’t ask citizens to tighten their belts without proof that the money they contribute through taxes is being managed honestly, efficiently and for the public good.”
The World Bank’s latest economic update indicates that Kenya’s economy expanded by 4.6 per cent but continues to face significant challenges, including a heavy public debt burden, limited formal employment opportunities and rising poverty.
The report further warns that increasing global fuel and food prices, partly driven by the conflict in the Middle East, may have pushed an additional one million Kenyans below the poverty line.
The World Bank says strengthening governance, improving transparency and accelerating anti-corruption reforms will be critical in ensuring public resources are directed towards essential services while supporting Kenya’s long-term economic recovery and inclusive growth.
