Kenya’s national debt is under government scrutiny in response to widespread protests against proposed tax increases in June. The Finance Minister, John Mbadi, confirmed on Monday that an audit has been initiated to determine the precise amounts owed to various creditors. The country’s debt is 10.5 trillion shillings ($81.71 billion).
The protestors’ demand for an audit was met after they successfully pressured the government to abandon several planned tax hikes. Currently, there is no specific release date for the audit report. Although the audit has commenced, Mbadi did not provide details about the investigation’s scope or the expected release date of the final report.
The auditor general, an independent constitutional office funded by the state, oversees the audit process.
Initially, President William Ruto appointed a committee to conduct the audit. Still, the head of the Law Society of Kenya and others declined the role, suggesting that the task should be entrusted to the auditor general instead.
When Mbadi was vetted in parliament, he promised to improve “debt accountability” and increase public awareness of the country’s financial situation.
The protests, which resulted in the deaths of over 50 people, led President Ruto to abandon the government’s financing law and resulted in credit downgrades from major global rating agencies.
Meanwhile, a team from the International Monetary Fund is on a fact-finding mission in Kenya. The IMF’s board is set to meet to review Kenya’s economic program and potentially approve a $600 million disbursement.