IMF praises Kenya’s economic recovery

The International Monetary Fund has commended the Government for maintaining economic stability in the wake of post-election violence.

The IMF executive board also praised the Government’s sound macro-economic policies and progress in economic reform in recent years, saying these had contributed to strong economic growth and poverty reduction.

“The directors regretted the interruption of economic activity that resulted from the post-election turmoil, but were encouraged that a recovery seems to be under way following the return to political stability,” said the IMF in a report released on Wednesday.

The fund, however, faulted the Government’s approach to reforms undertaken over the last decade, terming them overly reactive and overloaded.

The directors, who met in Washington on September 10, noted that downside risks remained, particularly from rising food and fuel prices and weakening global demand.

The directors recommended far-reaching structural reforms and infrastructure improvements to achieve Vision 2030 growth objectives.

“Priority reforms should include those in the financial sector, public financial management and the regulatory and trade regimes,” said the report.

Public and private sector partnerships were said to be vital in building Kenya’s infrastructure.

Elsewhere, Kenya has been ranked 17th in this year’s Index of African Governance report which is due to be released early next week.

Progress

The report, by the Mo Ibrahim Foundation and Harvard University, gives Kenya a score of 59.1 per cent and ranks Mauritius and the Seychelles first and second.

In the inaugural report released last year Kenya was ranked 15th with a score of 59.3 per cent.

The report assesses national progress in five key areas including safety and security, rule of law, transparency and corruption and sustainable economic development.

The 2008 report, scheduled for release on Monday in Addis Ababa, is derived from data collected in 2007.

Tanzania leads the pack in East African region at 15th position while Rwanda and Uganda are 18th and 19th respectively.