Economic Survey 2001

Abstract

The outlook of the 2001/2002 Financial Year will depend on a number of factors. . The Government completed the Poverty Reduction Strategy Paper (PRSP) which included broad-based consultations with all stakeholders up to the District level. The PRSP will enable the Government to focus its spending on priority areas identified by the Districts and the sectors. There is renewed commitment to the implementation of reforms including to improving governance in order to create an enabling environment necessary for good and sustained economic performance. These developments are important in marshalling additional concession external resources from bilateral and multilateral donors. In 2000, the IMF and World Bank announced that support to Kenya would resume, subject to the progress made in fulfilling the conditions agreed on. However, following ruling by the Judiciary that the Kenya Anti-Corruption Authority (KACA) was unconstitutional, non-passage of the Economic Crimes and code of ethics Bills by parliament, and delayed privatization of Telkom, donors withheld disbursement of programme funds. This led to budgetary constraints forcing the Government to reduce planned expenditures substantially during the year.