IMF says Kenyas economy better than other Sub Saharan states

The Kenyan economy is better than the rest of Sub-Saharan Africa states. This is according to a report released Thursday, by the International Monetary Fund (IMF).

IMF, however, advised the government to revise its expenditure in order to curb high bank lending rates as well as the exchange rates to counter external shocks of rates.

Speaking during the release of the report in Nairobi, IMF Resident Representative Armando Morales said despite the turmoil experienced by Imperial Bank, Kenya remains a stable economy for the banking sector.

He urged the Kenyan government to make a routine update to the public on financial state of the economy in the country to boost investors’ confidence.

IMF’s statement comes in the wake of the raging debate about the state of the economy with CORD leader Raila Odinga accusing the Jubilee administration of lying to Kenyans about the state of the economy.

On Sunday, President Uhuru Kenyatta assured Kenyans that the economy is strong and there is no cause for alarm.

Contrary to claims by critics, the Head of State said “Kenya is okay” and told critics that the freedom of speech is a constitutional right.

He encouraged Kenyans to work together, saying that unity of purpose will move the country to the next level of development.

This came days after National Assembly Leader of Majority Aden Duale dismissed Odinga’s allegations that the government diverted funds from the Eurobond to personal accounts.

Duale asserted that Odinga’s claims that the money is stashed in foreign accounts and is being used to trade in foreign stocks for private gains are misguided and unfortunate.

Duale said the fundamental objective of going for the Eurobond was to prevent the government from competing with the private sector in domestic borrowing, adding that they have looked elsewhere to source for more than Ksh 283 billion.

He said that USD 600 million was used to offset the loan that the retired President Mwai Kibaki’s administration borrowed from local banks, with a further Ksh 53 billion going towards settling other loans.

He added that the remaining amount was not stashed in foreign accounts, as alleged by Odinga, but put in the Central Bank of Kenya.

Two days ago, the Senate summoned Treasury Cabinet Secretary Henry Rotich to appear before it within seven days from Tuesday after he failed to appear before its Budget and Finance Committee to respond to queries on the state of the economy.