INVESTMENT:  The National Treasury yesterday hit back at claims that Kenya is the second worst country to invest in, as carried by a section of the media last week. The claims were erroneously attributed to the International Monetary Fund. But in a rejoinder, Treasury said Kenya remains an attractive destination for those seeking to invest and set up operations.

“This is due to the government’s commitment to establish and maintain a conducive investment climate,” stated the report from the Treasury  whose Cabinet Secretary is Ukur Yatan (right).

“Specifically the government has maintained a stable macro-economic environment by pursuing prudential fiscal and monetary policies,” the government said.

Last week, media reports quoting the World Uncertainty Index (WUI) said the economic and political uncertainty in Kenya has risen sharply by 84 per cent to 0.628 points from 0.34 in the second quarter of 2021.

The Bretton Woods institution, however, disassociated itself with the ranking. On July 16, it said the World Uncertainty Index which was cited widely by the media was developed independently by researchers, and does not reflect the official position of the IMF.

The report also indicated that Kenya was only better than Colombia in terms of political uncertainty.

 Treasury said inflation has remained stable, slightly crossing the upper bound of 7.5 per cent last month, but the government intervened by capping the prices of fuel and electricity with subsidies. “Further measures to waive import duty on maize and fertiliser are expected to moderate prices,” Treasury said.

Kenya’s debt to GDP ratio stands at 70 per cent; the country also spends 4.4 per cent of GDP on interest payments.