Kenya is showing commitment to fight corruption that has strained relations with key donors but recognises it still has more work to do to eradicate the problem, a senior World Bank official has said.
Juan Jose Daboub, the World Bank’s 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, Kenya’s leading lender, has delayed $265-million worth of aid to Kenya until it is satisfied that the government is committed to the fight against corruption.
”I see commitment from many members of Cabinet and members of Parliament with whom I spoke in terms of better governance and better tools to fight corruption, and that’s an encouraging sign,” Daboub told reporters in the Kenyan capital Nairobi, after a two-day visit to Kenya.
”I do think that there are good intentions and work is taking place in that direction. That doesn’t mean I have no problems. I had the opportunity to speak with president and he told me he would appreciate very much that we let him know if we find anything in our projects that we think is not right [and] that he is open to listen.”
Kenya’s economy, East Africa’s biggest, has grown significantly since Kibaki took power in late 2002 on a platform of reforms, but relations with donors have been strained due to graft scandals that have forced three ministers to resign.
The economy chalked up 5,8% growth last year compared with 0,6% in 2002, according to central bank statistics.
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 loan request for Kenya’s education sector and also had approved a $60-million credit to help Kenyans in the arid areas cope with the impact of a severe drought.
”We are going ahead with an education project going to the board next week,” he said. ”This is to show that in those areas that we see a clear commitment and a good use of the resources, we are working with your country and we will continue to do so.”
Poor infrastructure
Daboub, who is visiting seven countries in Africa, said despite impressive economic growth, Kenya’s potential for the private sector was impeded by poor infrastructure, rules that hamper trade in the region and a slow judiciary system.
”The time it takes to resolve contracts is important,” he said. ”Security needs to have a good component from the judiciary system so that any security issues are addressed and resolved in an expeditious manner.”
During his tour Daboub, a former Salvadorian finance minister who took over as the bank’s 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 bank’s position.
”We don’t like excess number of conditions but we want to make sure that some very basic ones are there and are met,” he said. ”In general, the conditions … are fair and necessary.” – Reuters