afrol News, 9 July - Currently visiting Kenya, IMF leader Horst Köhler expressed his strong support for the new policies of President Mwai Kibaki. He especially "congratulated" President Kibaki on the "strong measures the government is taking in addressing corruption."

Mr Köhler yesterday told the press in Nairobi that his visit to Kenya - which was his third to this country - should be seen as a sign of the International Monetary Fund's (IMF) "strong support for Kenya's development efforts."

- I had fruitful discussions with President Kibaki, Finance Minister David Mwiraria and his economic team, and also with the leader of the opposition, Uhuru Kenyatta, Mr Köhler said. "These talks helped to deepen my understanding of the current economic and social challenges facing Kenya."

Mr Köhler however noted that these challenges were formidable, and that the government had "begun to tackle them in a decisive manner, in the context of a broad-based consultative process."

He also emphasised that, additionally, a very close working relationship had developed between the Fund and the new Kenyan government. "It is in the interest of all Kenyans, and the international community, that Kenya achieves strong economic and employment growth and poverty reduction," Mr Köhler said.

This called for the effective exploitation of Kenya's potential, including the opportunities through integration into the global economy, the IMF leader said. Sustained implementation of bold economic reforms was said to be needed to strengthen the competitiveness of the economy.

- In my discussions with President Kibaki, I expressed the Fund's strong support for the way the government is approaching many of the problems, Mr Köhler said. "There is broad agreement that fiscal prudence is needed to reduce the domestic debt burden. I welcomed the fact that, despite the severe budgetary constraints, government spending has begun to be restructured in favour of crucial social and economic sectors, including education and health."

The IM leader said he also had "congratulated President Kibaki for the strong measures the government is taking in addressing corruption." The World Bank and the IMF had severed links with President Kibaki's predecessor, President Daniel arap Moi, over the alleged failure of Mr Moi to tackle corruption.

A sustained effort to fight corruption was named an important pillar to improve the investment climate for the private sector. "A thriving private sector and its investments are essential for job creation," Mr Köhler added. "Continued reforms, particularly of financial institutions and trade, will help foster growth and reduce poverty."

Mr Köhler further confirmed that he and Mr Kibaki had been discussing the IMF's financial support for Kenya's development strategy as laid out in the Economic Recovery Strategy for Wealth Creation and Employment. "I expect the staff to conclude these discussions in the near future," the IMF leader said.

- Thus, I come away impressed with the government's efforts in tackling the difficult challenges facing the country, Mr Köhler concluded. "For our part, we will remain committed to assist Kenya in creating the conditions for sustained and equitable growth and poverty reduction."

By staff writer

© afrol News

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