Kenyas Moi Slams Imf Aid Decision

Kenyan President Daniel arap Moi slammed on Sunday an International Monetary Fund (IMF) decision to cancel a big aid package as purely political and lacking economic sense.

In his first comment since the IMF ruling on Thursday Moi said: The stoppage of financial aid to Kenya by the IMF was purely political and has no economic rationality. The Presidential Press Service (PPS) quoted Moi as saying he had undertaken painful economic reforms often at great cost both socially and politically. Noting that the international community was not supportive of Africas economy President Moi recalled that he had on many occasions discussed social dimension issues with a former World Bank vice-president Edward Jaycox, the PPS reported.

The President observed that conditionalities imposed on Kenya disregarded these social dimensions and were therefore hurting Kenyans severely, the PPS added.

The IMF suspended a $205 million three-year loan to Kenya citing concerns over corruption and reform of the energy sector in a decision that rocked Kenyas equity and foreign exchange markets.

Moi, 73 and in power since 1978, faces elections this year pitting the ruling Kenya African National Union (KANU) party against an opposition that has found fragile cohesion in a campaign for constitutional reform. No election date has been set.

The IMF decision added pressure on Mois government, which said it would cut spending and raise revenue to meet the shortfall.