IMF team opens Kenya loan talks

Kibaki came to power promising a crack down on corruption

The International Monetary Fund (IMF) has begun talks with Kenya's government which could result in the release of a delayed loan to the country.

Officials from the IMF are carrying out a review of economic reforms aimed at cutting corruption in Kenya.

The second part of a $36m (£20m) IMF loan was delayed in May after political wrangling with the government.

However, the start of the talks have coincided with the resignation of a senior Kenyan anti-corruption official.

Ahmednassir Abdullahi, chairman of the Kenya anti-corruption advisory board, said he was quitting his role in protest at the government's refusal to appoint Dr Julius Rotich as deputy director of the country's newly created anti-corruption commission.

Kenyan hopes

Senior members of the commission, which is intended to investigate and prosecute corrupt officials, were sworn in on Friday.

But Mr Abdullahi accused Kenya's President Mwai Kibaki of usurping the "power and function" of the advisory board by refusing to appoint Dr Rotich.

Donors are waiting for this review to decide on whether to continue their lending to Kenya Kennedy Butiko, Bank of Africa

"I strongly believe that the action of the president in refusing to appoint Dr Rotich is illegal and contrary to the law," he said.

Kenya has expressed optimism that negotiations with the IMF will result in the release of the loan.

The delayed cash is part of a $252.75m three-year loan approved by the IMF last year after President Kibaki, who was elected on a reformist agenda, promised to crack down on corruption and revamp the country's struggling economy.

"Donors are waiting for this review to decide on whether to continue their lending to Kenya," said Kennedy Butiko of the Bank of Africa.

Analysts have raised concerns over the re-emergence of corruption in the government and wrangling over nominations for the anti-corruption commission.