World Bank says Kenya Telkom should be privatised and govt should step up war on corruption

Sh30bn loan hangs in balance

Story by JUMA NAMLOLA
Publication Date: 12/12/2005

Kenya risks being denied a Sh30 billion World Bank loan unless it fulfils tough conditions it agreed to in the next seven months, the Nation has learnt. The bank’s country director, Mr Colin Bruce, yesterday said the Government would be denied the loan unless it meets the conditions which include privatising Telkom Kenya and stepping up the war on corruption. "We have agreed with the Kenyan Government on a number of issues which we feel have to be resolved before we approve the loan," he said. Mr Bruce told journalists in Mombasa that the World Bank is closely monitoring what Kenya will be doing to meet the terms between now and June 2006, before it decides whether to approve the loan or not. The official was speaking at the Kenya Girl Guides Association training camp in Shanzu when he opened the first regional workshop for Girl Guides. He said: "The onus is now on Kenya to keep her word on the agreement. According to him, "the Government has been dragging its feet on the privatisation of the giant telecommunication corporation since the process started in April 2000." Mr Bruce also said that the fight against corruption was taking a snail's pace despite the formation of the Kenya Anti-Corruption Commission . A recent report released by Transparency International-Kenya showed that politicians and the Kenya Police Force were still extremely corrupt. Yet, these were some of the problems the World Bank wants tackled, Mr Bruce said. "The new Cabinet must now get down to business and put up urgent policies that will stamp out the rampant corruption from the Government. They should begin by taking action against all public officials implicated in corruption," said Mr Bruce. The bank also expects the Government to hasten the restructuring of banks and clamp down on money laundering by June next year. "We also want the Government to improve its financial management systems and strengthen the National Aids Control Council which has previously been riddled with corrupt administrators," he said. A lot of time was being spent in political battles rather than in dealing with important issues such as the performance of the economy, he said. "Instead of public bickering, political leaders should address the core issues affecting Kenyans of which graft is one. It is unfortunate that corruption has become a way of life in this country," he said. The Government had committed itself to implement the agreed terms by the end of the set period. But if the conditions are not fulfilled by that time, "then we will reconsider our position, the official said.