The World Bank has finally approved the much-delayed 25 million U.S. dollars for Kenya's institutional reform and capacity building project.

The bank said in a statement issued in Nairobi Wednesday that the funds would support the east African nation's fight against graft and strengthen the capacity to speed up economic growth.

"The World Bank Board of Directors Tuesday approved an International Development Association (IDA) credit of 25 million U. S. dollars to support the government of Kenya's fight against corruption and to strengthen the capacity of key ministries to contribute effectively to the government's Economic Recovery Strategy," the statement said.

The first group of ministries to benefit under the credit according to the bank will be finance, agriculture, planning and development, trade and industry, and the ministry for local government.

The bank said the Institutional Reform and Capacity Building ( IRCB) project will help strengthen public financial management systems, in order to enhance transparency, accountability, and responsiveness to public expenditure policy priorities.

It will also enhance public service delivery through the effective implementation of results based management.

"Board members expressed the view, widely held by Kenyans and others that corruption is still a serious impediment to shared growth and development, but they were also encouraged by the actions that the government has begun to take to address it," the statement said.

According to the statement, the directors reaffirmed the commitment of the Bretton Woods institution to remain engaged in Kenya and to provide financial support in areas of development where there is strong ownership and effective leadership by the authorities.

"This credit provides critical and timely support for the technical inputs required to strengthen Kenya's public financial management systems. It also acknowledges the role of ethics in public life by financing values-based programs in transformative leadership," said Colin Bruce, the World Bank's country director for Kenya.

Bruce also acknowledged the huge challenge still faces Kenya on corruption and said that the recent allegations around the Anglo Leasing cases represent an excellent opportunity for the authorities to invoke the disciplinary provisions of the Code of Conduct signed by the new cabinet weeks ago.

"I believe that this is an historic moment for the government to signal where it stands on the issue of political accountability, even when further evidence still needs to be gathered or examined, " he added.

The Anglo Leading scam was one of several questionable contracts entered into by President Mwai Kibaki's government, which swept to power in 2002 on a reform and anti-graft platform but has come under increasing donor criticism for failing to fight corruption.

Source: Xinhua