Kenya: Third Review Under the Poverty Reduction and Growth Facility Arrangement and Request for Waivers of Nonobservance of Performance Criteria: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Kenya
IMF Staff Country Reports, January 22, 2009
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- Kenya: Third Review Under the Poverty Reduction and Growth Facility Arrangement and Request for Waivers of Nonobservance of Performance Criteria: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Kenya
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Bibliographic details
- Published: January 22, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451821222.002
Summary
- Presents findings of the Third Review under the poverty reduction and growth facility arrangement for Kenya.
- Notes a sharp spending increase budgeted for 2007/08 that could exert pressures on domestic prices and compromise project quality.
- Authorities are taking steps to mitigate these risks and are committed to fully implementing the budget only if nonfood inflation remains low and project quality is maintained.
- Reports that some aspects of governance have improved, but challenges remain.
- Recommends broadening structural reforms in public financial management and accelerating financial sector reforms.
Fiscal stance and budgetary risks
- Sharp spending increase budgeted for 2007/08 could:
- Exert pressures on domestic prices.
- Compromise project quality.
- Authorities’ conditional commitment:
- Will fully implement the budget only if nonfood inflation remains low and project quality is maintained.
- Mitigation measures:
- Authorities are taking steps to mitigate the risks associated with the spending increase.
Inflation, monetary, and financial sector issues
- Inflation focus:
- Nonfood inflation is the explicit conditional metric for full budget implementation.
- Financial sector reforms:
- Assessment states that financial sector reforms need to be accelerated.
Governance and public financial management
- Governance:
- Some aspects of governance have improved, but challenges remain.
- Public financial management:
- Structural reforms need to be broadened.
Subject coverage and keywords
- Subject: Arrears, Banking, Economic and financial statistics, Expenditure, External debt, Government finance statistics, Health, HIV and AIDS, Monetary base, Money, Open market operations
- Keywords: Africa, Arrears, authority, CR, Executive Board discussion, Global, Government finance statistics, government use, HIV and AIDS, ISCR, making Kenya, Monetary base, PRGF, PRGF arrangement, private sector development reform, SDR