Kenya to spend huge resources to revive economy: president

Kenyan President Mwai Kibaki has reaffirmed his government's commitment to getting the economy back on the path of sustainable growth, saying that the government was spending huge resources to revive key areas of the economy including the dairy industry, the cereals sub-sector, livestock production and marketing, coffee farming and improving the infrastructure.

"I observed during the opening of this event last year, my government has remained focused on getting the economy back on the path of sustainable growth," Kibaki said in a speech on Wednesday when he officially opened this year's Nairobi International Trade Fair.

Noting that the state of the infrastructure in the country is a major concern to the farming sector, Kibaki said the government has set aside 32 billion Kenyan shillings (about 441.4 million U.S. dollars) for the implementation of road programs this financial year, according to a press release from the Presidential Press Service.

Kibaki pointed out that the government has put a lot of resources in reviving collapsed enterprises and other systems and would not let those efforts go to waste through theft.

He assured farmers that the government is paying special attention to reconstruction and rehabilitation of roads, including those in the rural areas.

A further 15 billion shillings (about 206.89 million dollars) for roads improvement and maintenance countrywide will be disbursed through the Kenya Roads Board, Kibaki said.

In addition, the president said the Northern Corridor that runs from Kenya's coastal city of Mombasa to Busia in west Kenya is being reconstructed and rehabilitated at a cost of over 26 billion shillings (about 358.6 million dollars).

"The on-going massive investments in infrastructure are expected to support further economic expansion and augment Kenya's position as the hub of the eastern and central Africa region," Kibaki said.

The massive investments in infrastructure will also enable the business community to take advantage of the emerging opportunities under the East African Customs Union and post-conflict reconstruction in southern Sudan, he added.

Noting that this strategy is bearing fruits, with the economy attaining impressive growth rates over the last three years, Kibaki pointed out that last year's growth of overall real Gross Domestic Product reached a record 5.8 percent.

"We are pressing ahead to achieve better performance this year and in the coming years," he said.

On air transport, the president said the expansion and modernization program of Nairobi's Jomo Kenyatta International Airport at a cost of over 9.5 billion shillings (about 124.1 million dollars) is a step towards facilitating trade with markets in Europe, the Far East, North and South America .

"My government has continued to widen markets for Kenyan products and services at the bilateral, regional and multilateral levels," Kibaki said.

On the macro-economic environment, Kibaki pointed out that the government has brought inflation under control and ensured stability in the foreign exchange markets.

He added that the stable Kenyan shilling has partly mitigated the inflationary effects of the rise in international crude oil prices, saying the government has also improved the business regulatory regime by reducing the number of licenses for registration of business.

"In the past, we have had too many licenses and regulations that have been a burden to the business community," said the president.

On agriculture, Kibaki said his government has instituted a wide range of measures to revitalize the sector.

He stressed that in the last three years, the government has restructured and re-activated public institutions providing goods and services to the agricultural sector.

Citing field extension services which are critical in providing farmers timely advice on improved farming methods, he said this financial year the government has set aside over 1.5 billion shillings (about 20.68 million dollars) to finance the services, adding that the government is also providing more funds for rehabilitation of Farmers Training Centers.

At the same time, the president renewed the government's determination to rid the country of corruption, dishonesty and other similar vices that eroded the gains made in the country,

The government will not relent on the war against graft and cautioned those who will be caught in such vices not to expect any mercy, Kibaki said.

Source: Xinhua