Kenya
IMF foresees "early re-engagement" in Kenya

afrol News, 21 January - The International Monetary Fund (IMF) today informed about its meetings last week with the new Kenyan government and concluded on "encouraging" developments in Kenya. A timetable for the "early re-engagement" of the Fund's operations in Kenya had already been set. 

IMF regional Director, Abdoulaye Bio-Tchané, and his delegation on 15-17 January had met with Kenya's new President Mwai Kibaki and several members of the new government - including Finance Minister David Mwiraria and Planning and National Development Minister Anyang Nyong'o. "The discussions covered the broad developmental aspirations and the policy areas that the government will be focusing on in the period ahead," an IMF communiqué issued today said.

IMF and World Bank financing in Kenya was suspended in January 2001 due to growing concerns about corruption. President Kibaki had however made the fight against corruption one of his primary goals, thus triggering the envisaged comeback of IMF support. Anti-Corruption and Economic Crimes Bills are due to be brought to Parliament within short.

The IMF's Mr Bio-Tchané extended congratulations on President Kibaki's election and indicated that management and staff of the IMF "looked forward to working closely with the government," the Fund's statement reads. 

The IMF director particularly had welcomed "the public commitment of the new administration to tackling corruption and strengthening governance," and noted that this was to be given a top priority. In this regard, Mr Bio-Tchané noted that the governance approach that the new administration had begun to put in place was "very encouraging". The delegation further had taken note of the government's insistence that the Anti-Corruption Legislation would be enforced strictly and fairly.

Mr Bio-Tchané said he "shared with the authorities the high expectations of the citizens of Kenya." Therefore, it was "imperative that clear priorities be established within an appropriate reform framework, in light of the overall resource constraints," he said in Nairobi. The IMF found it "encouraging" that the government recognised the difficult situation and had started to identify remedial steps to address this situation, the IMF states.

A timetable for the IMF's re-engagement in Kenya had already been loosely set, the Fund informed. A more detailed discussion of the issues was foreseen in a regular consultation next month. At this stage, it was anticipated that "discussions on a new program with Kenya will begin in April/May on the understanding that the agreed prior actions would have been completed," the IMF stated. 

The IMF staff was to continue to work closely with the authorities "to facilitate an early re-engagement to support the government's efforts." In the meantime, the IMF stood "ready to provide the government with the technical assistance that may be necessary."

The IMF delegation finally informed it had shared its assessment of the situation with representatives of the donor community in Nairobi. Other international finance institutions and donors - such as regional banks, national development agencies and creditor nations - mostly base their cooperation on the assessments of the IMF and on the World Bank's financing of a programme to fight poverty. 

Sources: Based on IMF and afrol archives

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