On Thursday, President William Ruto refused to sign the much-awaited Conflict of Interest Bill 2025 into law. Instead, he returned it to Parliament for further review and improvement.
This bill is part of a package of reforms required by the World Bank in order for Kenya to receive additional loans and development aid.
Both the World Bank and Treasury Cabinet Secretary John Mbadi had confirmed that Kenya needed to pass this bill to qualify for future funding.
Interestingly, this move came just hours after the World Bank had shown confidence in Kenya by approving a Ksh77 billion loan, which equals about USD 600 million.
Despite this progress, the World Bank had made it clear that the full disbursement of around Ksh104 billion (roughly USD 800 million) depended on the successful passage of the Conflict of Interest Bill.
This legislation is one of the key measures the World Bank wants Kenya to implement to improve governance, enhance transparency, and reduce corruption.
The Bill was seen as a significant step in pushing for accountability within government systems and public service.
By sending the bill back to lawmakers, Ruto’s decision could have a twofold effect on Kenya’s economy.
On one hand, it might encourage the World Bank to offer more low-interest loans in the future, seeing that Kenya is serious about getting the bill right.
On the other hand, it might also cause the Bank to delay releasing the next batch of funds while waiting for Parliament to finalize the law.
State House released an official statement explaining the reason behind the president’s move. According to the statement, Ruto returned the bill because it failed to address important issues that matter to Kenyans, particularly corruption and accountability.
“President William Ruto on Thursday morning referred the Conflict of Interest Bill 2025 back to Parliament for reconsideration,” the statement said.
It continued: “In his commitment to fight corruption and promote integrity in public service, the President has consistently urged Parliament to pass the bill quickly.
However, he made it clear that he would not sign any version that did not set high standards for accountability and anti-corruption efforts.”
The statement also added that although the bill does address conflict of interest, the President believes it still needs stronger clauses on transparency, enforcement, and adherence to the values of integrity and good governance laid out in the Constitution.
Following Article 115 of the Kenyan Constitution, President Ruto sent the bill back to Parliament along with a memorandum highlighting the areas that need improvement.
Passing an improved version of the bill could increase the chances of receiving more funds from the World Bank.
Treasury Cabinet Secretary John Mbadi also confirmed this while speaking before the National Assembly on Wednesday, April 16.
He announced that the government had secured a Ksh78 billion loan facility from the World Bank, which is expected to be released in June 2025.
“Doors are opening for external resources. The World Bank disbursement is coming in June,” Mbadi stated. He explained that delays were caused mainly by the pending approval of the Conflict of Interest Bill.
Additionally, Mbadi revealed that another loan of Ksh34.3 billion (equivalent to USD 265 million) would be unlocked in the coming week, further emphasizing the importance of passing the bill to maintain trust with international partners and keep development funding flowing.
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