afrol News, 20 November - With the disbursement of US $59.3 million by the International Monetary Fund (IMF) to Kenya has completed the country's third and final review of its three-year poverty reduction and growth arrangement and economic performance.

In totality, the IMF disbursed over US $237 million to bolster Kenya's poverty fight.

The IMF said the country's economy is growing strongly, despite being bereft of sound macroeconomic management and progress in structural reforms.

“While the sharp increase in spending planned in the 2007-08 budget entails some risks, the authorities are taking steps to address the risks, including by back loading development spending in line with available financing and fully implementing the budget only if inflation remains low and project quality is maintained,” the IMF said in a news dispatch.

Kenya has been advised to operate a monetary policy with a major goal centers around beating high inflation and that its Central Bank works hard towards achieving its reserve money targets.

Despite recording some important progress, the IMF said Kenya still grapples with governance challenges.

“Efforts to fully implement the Governance Action Plan should continue, and more progress is needed in investigating and prosecuting high-profile corruption cases," the IMF advised, hailing Kenya for streamlining the business regulation as well as strengthened the public financial management.

But it said greater efforts are needed by the Kenyan government to improve the legal framework for public finance management and to accelerate financial sector reform.

By staff writer

© afrol News

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