Kenya report reveals financial mismanagement burden

Subject

Auditor general's report.

Significance

The auditor general's report on the 2013-2014 financial period has indicated that only around one quarter of all national government money spent and collected was properly accounted for. The report covers the first year in power for President Uhuru Kenyatta's government, which has consistently pledged to reduce financial mismanagement. However, the report, combined with mounting concerns about corruption at the county level, calls into question whether the Jubilee Alliance has the will or capacity to bring the problem under control.

Impacts

• Claims of financial abuse heighten distrust of the government in opposition communities who feel excluded from access to state resources.
• Rising corruption will deter foreign investors, reinforcing Kenya's tendency to underperform on foreign investment levels.
• Corruption is undermining major infrastructure projects, preventing the economic gains that would come from better roads and railways.