Tuesday, November 3, 2009

IMF says Kenya’s economy is stabilising, likely to recover

Published on 02/11/2009 by The Standard [Kenya] - James Anyanzwa

The International Monetary Fund (IMF) has applauded the progress the country has made to stabilise the economy since the post-election violence of early last year.

This comes after the Bretton Woods institution concluded its scheduled Review Mission to Kenya. Speaking during a briefing with Prime Minister Raila Odinga on Wednesday, the IMF’s Mission team leader Michael Atingi-Ego singled out the strong Balance of Payments position, a lower inflation rate and the robust dialogue the Government has been having with the Private Sector.

According to a statement from the PM’s office, the IMF was happy to hear from a number of private sector players that corruption had gone down.

"Kenya’s economy is likely to recover" said Mr Atingi, noting that even with only modest growth, it would be possible to reduce the current deficits.

The IMF team noted the impact of the economic stimulus package put forward by the Government, along with other reform measures that have contributed to stability in the financial sector.

Better cash flow

The IMF lauded progress with improved Public Financial Management, noting that most ministries had been rolled to the new Integrated Financial Management System leading to better cash flow management in the Government.

Central Bank of Kenya was applauded for the way it handled the flow of money in the economy.

The team expressed hope that Parliament would move faster once it reconvenes to pass key legislation that aim at strengthening the financial sector further.