## Kenya: Request for a Three-Year Arrangement under the Poverty Reduction and Growth Facility

_IMF Staff Country Reports, January 8, 2004_

## Source details

**Canonical URL:** [Kenya: Request for a Three-Year Arrangement under the Poverty Reduction and Growth Facility](https://www.imf.org/en/publications/cr/issues/2016/12/30/kenya-request-for-a-three-year-arrangement-under-the-poverty-reduction-and-growth-facility-17101)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/30/kenya-request-for-a-three-year-arrangement-under-the-poverty-reduction-and-growth-facility-17101/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/30/kenya-request-for-a-three-year-arrangement-under-the-poverty-reduction-and-growth-facility-17101/index.json)
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## Bibliographic details
- Published: January 8, 2004
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451821109.002

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### Overview
- Kenya showed poor implementation of policies and weak economic performance under the Poverty Reduction and Growth Facility (PRGF) arrangement.
- The government formulated a new Economic Recovery Strategy for Wealth and Employment Creation (ERSWEC) aimed to address major macroeconomic vulnerabilities.
- Executive Directors emphasized the need for domestic debt reduction, the restructuring of spending, and a sustained implementation of the reform agenda.
- Executive Directors suggested that bold reforms will be essential to encourage private investment and to mobilize adequate donor support for the reforms.

### Key findings
- Poor implementation of PRGF policies and weak economic performance under the PRGF arrangement.
- New government strategy: Economic Recovery Strategy for Wealth and Employment Creation (ERSWEC) intended to address major macroeconomic vulnerabilities.
- Emphasis by Executive Directors on:
  - domestic debt reduction
  - restructuring of spending
  - sustained implementation of the reform agenda
- Role of reforms: essential to encourage private investment and mobilize adequate donor support.

### Policy recommendations and implications
- Prioritize domestic debt reduction.
- Restructure public spending to support macroeconomic stability and poverty-reduction priorities.
- Sustain and deepen implementation of the reform agenda under ERSWEC.
- Implement bold reforms to:
  - encourage private investment
  - mobilize adequate donor support for the reforms

### Subject classifications and keywords
- Subject: Banking, Expenditure, External debt, Imports, International trade, Poverty, Poverty reduction strategy, Public debt
- Keywords: Africa, CR, ERSWEC programme, Global, government, Imports, ISCR, Kenyan authorities, outlay, Poverty reduction strategy, PRGF loan, PRGF-supported program, priority poverty reduction outlay, strategy, Sub-Saharan Africa

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## Content in this bundle

- **1.     Recommended Action Plan to Improve Compliance with the**
  - [1.     Recommended Action Plan to Improve Compliance with the (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04399.pdf.md){rel="alternate" type="text/markdown"}
  - [1.     Recommended Action Plan to Improve Compliance with the (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04399.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/kenya-request-for-a-three-year-arrangement-under-the-poverty-reduction-and-growth-facility-17101_