World Bank Warns Corruption Threatens Kenya’s Growth

The World Bank has identified corruption as a significant obstacle to Kenya's economic growth, highlighting its impact on the country's fiscal stability. The lender's latest Kenya Economic Update report underscores the need for improved governance to support sustainable development.

According to the World Bank, corruption and collusion are estimated to cost Kenya 2 per cent of its GDP annually. This loss is attributed to higher fiscal deficits, which increase the government's borrowing requirements.

President William Ruto and World Bank President Ajay Banga met during the G20 Compact with Africa Conference in Berlin, where discussions on Kenya's economic challenges were emphasized. The World Bank urged the Kenyan government to tackle governance issues to foster inclusive growth.