IMF chief lauds Kenya’s economic recovery program

Nairobi, Kenya | Xinhua | International Monetary Fund (IMF) Managing Director Kristalina Georgieva has expressed confidence in the Kenyan government’s economic recovery program.

Georgieva, who is on a visit to Kenya, lauded the country’s decision to prioritize investment in agriculture and Micro and Small Enterprises (MSESs) that offer quick turnaround results.

“We commend you for what you are doing on your fiscal measures. The country is certainly headed in the right direction,” she said during a meeting with Kenyan President William Ruto in the East African country’s capital of Nairobi on Wednesday.

According to a statement from the presidency, Georgieva said the Kenyan government’s dynamism of investment, prudent fiscal measures, and transparency in governance have set the country on the path of success.

She said the IMF is ready to support the Kenyan government to fast-track the country’s economic recovery programs.

Her remarks came as Kenya has kicked off a plan to raise funds in the international market through a sovereign bond in the financial year 2023/2024 which is expected to raise the public debt stock. The money raised would be used to offset a 2 billion U.S. dollars Eurobond that would be done in June 2024.

For his part, Ruto said the government is committed to managing the country’s debt to sustainable levels.

He said the government has cut down on new projects and stopped subsidy programs that were draining the country’s resources. “We commit to staying the course, especially on fiscal discipline and giving priority to projects that will have the circulation of money.”

The president thanked the IMF for its continued support pledging to work toward making the country’s domestic market attractive through the management of interest rates.

He said the government has deliberately invested in agriculture and MSESs to create opportunities, income, and wealth for as many Kenyans as possible in line with the bottom-up economic transformation agenda.