Omtatah raises alarm over corruption as World Bank warns of rising borrowing

Senator Okiya Omtatah has expressed concern over Kenya's continued reliance on borrowing to fund development projects, highlighting corruption as a significant barrier to economic growth. According to a statement released on X on November 7, 2026, Omtatah pointed to the World Bank's latest report, which confirmed that corruption is a major impediment to economic progress in the country.

He emphasized that funds lost to corruption could have been allocated to essential services such as education, healthcare, and job creation, stating that "every shilling stolen is a shilling denied to schools, hospitals, jobs and development."

The World Bank's 34th edition of the Kenya Economic Update, released days after Omtatah's remarks, identified corruption and poor governance as key challenges to economic growth, job creation, and sustainable public finances. The report estimated that corruption and collusion contribute to a two percentage point increase in Kenya's annual fiscal deficit, which is calculated as a percentage of Gross Domestic Product (GDP).

This additional financial burden necessitates more borrowing, which in turn strains the government's budget and reduces resources available for development initiatives.

Omtatah attributed the country's elevated public debt and increasing interest payments to the ongoing issue of corruption, noting that interest payments consume about one-third of government revenue, leaving less money for crucial services and projects. Furthermore, the World Bank warned that weak governance exacerbates borrowing costs, making it more expensive for Kenya to access financing due to concerns over the integrity of public institutions and their accountability.

Corruption also hampers private sector investment and employment, with 39% of surveyed businesses considering it a significant hindrance in 2025. Medium-sized enterprises were particularly affected, with nearly 48% reporting that they had to offer bribes to achieve their objectives.

The lender suggested that implementing moderate governance reforms could boost Kenya's GDP by 8.7% by 2035, compared to a situation without such reforms. More ambitious measures could potentially increase economic output by 22.3% over the same period, support an estimated 7.7 million additional and higher-quality jobs, and raise household consumption by up to 27%.

The World Bank recommended strengthening public procurement oversight, enhancing transparency in government spending, enforcing conflict-of-interest rules, and simplifying regulations that facilitate bribery.

Despite these recommendations, Omtatah criticized the Kenyan government for having the necessary laws to combat corruption but lacking the political will to enforce them. He argued that accountability should be a constitutional obligation rather than a discretionary favor granted by those in power, stating, "Accountability is a constitutional obligation, not a favour."