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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
The World Bank has outlined a series of tax and expenditure reforms that Kenya must implement to strengthen its fiscal position, warning that persistent inefficiencies continue to blunt the impact of government spending.
The findings are contained in the bank's Kenya 34th Economic Update, which calls on Nairobi to make its fiscal policy more equitable by reviewing tax expenditures, improving tax progressivity, better targeting social assistance, and protecting priority social spending.
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The report singles out several structural weaknesses undermining public expenditure.
Bloated wage bills are crowding out development spending and frontline service delivery, while weak controls over payroll and procurement, fragmented cash management systems, a backlog of pending bills, and broader governance failures are reducing the effectiveness of every shilling spent.
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The bank also drew a direct link between county-level governance and efficiency outcomes, finding that counties reporting higher rates of bribery tend to record lower levels of spending efficiency.
