This archive report was first published on 16 August 2019.
On August 16, 2019, the World Bank released a report highlighting the need for Kenya's government to improve its financial management practices.
According to the report, the country's poor management of public resources has resulted in massive costs on projects that could have been completed at a lower cost.
One of the main issues identified by the World Bank is the delay in payments to vendors by both county and national governments. This delay inflates the cost of development projects, as contractors factor in the risk of delay when creating bids.
Furthermore, the delays in payments affect private sector liquidity, limiting the capacity of private companies to participate in capital-intensive infrastructure projects. This, in turn, slows down their profits and hinders economic growth.
