Kenya / Statement at the Conclusion of an International Monetary Fund (IMF)
Staff Mission to Kenya

 

NAIROBI, Kenya, July 3, 2008/African Press Organization (APO)/ — An International Monetary Fund (IMF) staff mission, headed by Mr. Thomas Krueger, visited Kenya during June 23-July 2, 2008, to conduct discussions for the 2008 Article IV consultation. The mission met with Prime Minister Raila Odinga, Finance Minister Amos Kimunya, Central Bank Governor Njuguna Ndung’u, and other senior government officials, as well as with representatives of the business community, labor unions, civil society and Kenya’s development partners.

The mission issued the following statement in Nairobi today:

“Economic growth in 2007 reached 7 percent, the highest growth in over two decades.

This cannot be the truth and has to be barred,completely!!!!!!!!!!!

Unless someone needs to define to me what Economic growth is.Oh sorry maybe it meant,everything,and I mean every fucking thing,from bread , via fertilizer to fuel and fare rises!

 This owed much to sound macroeconomic policies and progress on structural reforms—and Kenya also benefited from a favorable external environment. The strong momentum was interrupted, however, by the post-election turbulence in early 2008. This left a severe human toll and its economic effects were evident not only in Kenya, where tourism, agriculture, and transport were particularly affected, but also in the region as transport links were interrupted.

what on earth is this?Post -election turbulence?Spare me crap! Things that had been twice expensive,went just thrice or even four times more expe!

By the way,sikatai, Kenya had been a sort of island for a long time.Kenyans have been working so hard to keep end meet,stop blaming the election turmoil!It was Kenya’s way to show that they are fed up with corruption in front of their noses!
“With the formation of the grand coalition government, the economy is regaining its footing.

Am I dreaming?Its like the Grand Regency saga is just another economic growth!

While a full recovery in some sectors is likely to take time, including in tourism, the economy as a whole is already rebounding. Overall, we expect GDP to grow by some 4 percent in 2008—a respectable result given the events of the first quarter.
 

“We support the Central Bank of Kenya’s (CBK’s) recent actions to tighten monetary policy. Indeed, the CBK needs to be prepared to take further steps if this proves necessary to forestall second-round effects of rising food and energy prices on overall inflation. Inflation has clearly increased, even though the official consumer prices index (CPI) imparts a substantial upward bias. The mission looks forward to expeditiously implementing steps that would bring the CPI-compilation in line with international best practice.

“The government’s Vision 2030 sets out rightly ambitious longer-run objectives, with Kenya aiming to reach middle-income status. Achieving these objectives will require further structural reforms but also public spending to address crucial supply bottlenecks. The mission was encouraged by the widespread recognition that this needs to take place within a framework that has the private sector as the engine of growth and preserves macroeconomic stability. Strong growth will also require a highly competitive tradable sector. The mission agrees that improving competitiveness depends foremost on addressing supply bottlenecks and structural reforms—with progress all the more urgent in light of the strong exchange rate. On structural reforms, much has already been achieved in recent years, including with improvements in public procurement and the streamlining of business licensing requirements. Some of these steps formed part of the Governance Action Plan for 2006/07, and we look forward to its update. We also note the intense public debate concerning the sale of a property in the course of recovering a debt owed to the Central Bank of Kenya; the swift initiation of steps aimed at providing a full public account and taking follow up actions, as needed, is welcome.”

OK, lets see how this will go.

OH,Mps always see the economic growth,after all,they get more and more allowances,and salaries, always increased,so,things have never been better to them!
 

SOURCE : International Monetary Fund (IMF)

These are just my views,as a Kenyan, on the article.

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