This archive report was first published on 11 September 2019.
On September 11, 2019, the Kenyan government took a significant step in the fight against corruption by announcing plans to liquidate seized graft assets and invest the proceeds in government bonds.
This move is a welcome development as it aims to return to taxpayers what was pilfered by corrupt officials and other private individuals or businesses.
For a long time, recovered corruption monies and assets have disappeared back into the hole since there was no process or system to ensure that the money has been directed to rightful use.
It becomes even more painful when one considers that taxpayers who were robbed in the first place are being asked to step in to finance the expensive loans procured by the State to cover the Budget deficit caused partially by the theft in public coffers.
Putting the proceeds of the seized assets in government bonds is a good idea as it will demonstrate to the public that the State is serious in punishing the corrupt and using the money recovered for a social or collective good.
However, it is also desirable that the Treasury put these recovery funds in a specially designed bond — preferably an infrastructure bond — which will ensure and assure Kenyans that the proceeds go to projects that will benefit the largest number of people possible.
