Ruto strikes new deal with IMF to strengthen Kenya’s economic output
Ruto strikes a new deal with IMF to strengthen Kenya’s economic output, by offering support to Kenya’s development agenda.
On November 5, President Willian Ruto met with Abebe Aemro Selassie, Director of the African Department of the International Monetary Fund (IMF), at the State House in Nairobi.
Through a number of efforts, Ruto’s government and IMF collaborated to increase Kenya’s economic production.
President Ruto noted that IMF strategically realigned its priorities with the Kenya Kwanza agenda of lifting the most vulnerable from economic despair.
“We are taking deliberate measures to strengthen the economy through reforms at the Kenya Revenue Authority (KRA), shifting from consumption subsidies to production, raising the level of national savings, and focusing on value addition, among others,” State House announced.
“We are grateful that the International Monetary Fund is aligned with this strategy,” State House added.
Along with other IMF officials, Abebe Aemro Selassie expressed his satisfaction with the successful visit.
The government of former President Uhuru Kenyatta had a close economic relationship with the IMF director.
IMF made a promise to assist Kenya’s development program on its website, despite a change in government following the August 2022 Election.
“Kenya’s economic program supported by the Fund’s Extended Fund Facility and the Extended Credit Facility arrangements is providing an essential policy anchor to debt sustainability and public confidence.
“In this context, the authorities’ continued steadfast commitment to prudent policies and advancing structural reforms remain essential to maintain macroeconomic stability and safeguard Kenya’s positive medium-term prospects,”IMF wrote.
IMF also welcomed the Central Bank of Kenya’s recent monetary policy on tightening fiscal expenditure.
According to IMF, “the CBK should stand ready to continue adjusting its stance to limit second-round effects from higher food and fuel prices and keep inflation expectations well-anchored amid a temporary increase above the target band.
“The flexible exchange rate functioned as a shock absorber during the pandemic and should continue to do so against current global shocks, with forex interventions limited to addressing excessive volatility.”
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