Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Speaking at State House in Mombasa, President Uhuru Kenyatta said the government needed to be cautious as the country remained vulnerable to future shocks which must effectively be dealt with/PSCU

Kenya

Uhuru puts Kenya’s case to IMF boss

Speaking at State House in Mombasa, President Uhuru Kenyatta said the government needed to be cautious as the country remained vulnerable to future shocks which must effectively be dealt with/PSCU

Speaking at State House in Mombasa, President Uhuru Kenyatta said the government needed to be cautious as the country remained vulnerable to future shocks which must effectively be dealt with/PSCU

NAIROBI, Kenya, Jan 7 – The government has sought for more cash from the International Monetary Fund (IMF) to deal with potential economic shocks going forward.

Speaking at State House in Mombasa, President Uhuru Kenyatta said the government needed to be cautious as the country remained vulnerable to future shocks which must effectively be dealt with.

Kenyatta who hosted the visiting IMF Managing Director Christine Lagarde, said the government would borrow the funds under Poverty Reduction and Growth Trust, which is a lending arm of IMF to the developing countries.

“Kenya has almost exhausted the concessional window under the Poverty Reduction and Growth Trust. We are therefore looking for an arrangement that can blend these funds with the General Resources Account (GRA) to increase available resource to build an effective buffer,” he said.

The Head of State said the country needed an insurance-type facility that can be accessed as and when needed with sufficient resources to effectively handle short-term shocks.

Having successfully completed the three year Sh65 billion Extended Credit Facility given in 2011, Kenyatta said the government would be ready to continue its cooperation with IMF.

The extended credit facility that was put in place three years ago implemented monetary policies that have helped tame inflation and accumulated resource reserves.

Kenya’s Inflation rates in November hit a high of 19.72 percent but were later managed downwards to a single digit in 2013.

“Considering the progress we have made so far, I believe that there is sufficient justification for such a partnership but I will leave this to you and your staff to ponder. My officers from the National Treasury are ready to provide any information or analysis that may be required to support this request,” the president added.

On her part, Lagarde commended Kenya for undertaking ambitious programmes to accelerate economic growth and improve the lives of the citizens hence setting economic standards in the region.

Advertisement. Scroll to continue reading.

She said the programmes would also cushion Kenya incase of economic turmoil and external potential shocks.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...