SPEECH BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H.

, PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCES OF THE REPUBLIC OF KENYA DURING THE A DINNER HOSTED IN HONOR OF VISITING IMF MANAGING DIRECTOR, CHRISTINE LAGARDE AT STATE HOUSE, MOMBASA, 6 TH JANUARY 2014 Madame Christine Lagarde, IMF Managing Director Distinguished Guests Ladies and Gentlemen I am delighted to welcome you and your delegation to Kenya, and to the City of Mombasa, one of the oldest settlements along the eastern coast of Africa dating back centuries Let me take this o!!ortunity to wish you and your delegation a "a!!y #ew $ear and to say that we are honored to ha%e such a high&!owered guest this early in the year 'his bodes well for us as we reflect on the successes and challenges that we encountered in the !ast year At the same time, we are !ositioning oursel%es to sei(e the o!!ortunities that lie ahead and of course !re!aring to confront any challenges that may arise Madame Managing Director As you are aware, we ha%e a strong !artnershi! with the IMF, which is anchored on sound macroeconomic !olicy In that !artnershi!, one feature that stands out is the successful com!letion of the !rogramme under the IMF)s *+tended Credit Facility ,*CF-, which was a!!ro%ed by the *+ecuti%e .oard two years ago 'his !rogramme had strong ownershi! by the Go%ernment It was %ery well designed and took into account the s!ecific circumstances of our socio&economic and !olitical realities It was im!ortant for us that the !rogramme su!!orted our desire for growth that is inclusi%e growth that lea%es no one behind In my %iew, the %ery !ositi%e results achie%ed under the Facility are testimony that the IMF has come of age in the way it engages with member countries in designing and im!lementing !rogrammes Madame MD Let me add that our enhanced !artnershi! has not /ust been in !rogramme su!!ort and technical assistance In recent years, we

ha%e co&hosted regional and international conferences bringing together !artici!ants and officials from African countries, international e+!erts and others to come to share e+!eriences and learn from each other as we work together to grow the continent to become the mighty economic !ower that it deser%es to be 'he international conference on Kenya0s *conomic 1uccesses, Challenges, and 2ros!ects that we co&hosted in #airobi in 1e!tember last year is one such e+am!le I was a ha!!y !artici!ant at the conference and can confirm that it was a resounding success I trust your team told you the same 3e ha%e also worked closely with our sisters and brothers in the *ast African Community to make the region a single economic unit where !eo!le can trade, in%est, and tra%el freely 4ur a!!roach is !remised on the fact that Kenya)s sustained growth is !artly reinforced by !ros!erity amongst our neighbouring states .uilding on these successes, we are encouraged to be more ambitious and aim much higher in terms of our economic agenda I belie%e that it is now time for us to shift gear and think of a !artnershi! that will !ro!el Kenya beyond a 5Frontier *conomy5 to a truly middle&income country 4ur own #ational 6ision 7898 en%isages our country becoming a middle&income country by 7898 I ha%e told my fellow Kenyans that I belie%e we can achie%e this in the ne+t si+ years "owe%er, it will take disci!line, focus and commitment to walk the !ath My Go%ernment recogni(es the im!ortance of achie%ing durable broad&based growth As such, we are working round the clock to accelerate growth so as to create /obs and reduce !o%erty 3e are doing this by enhancing the com!etiti%eness of the economy through in%estment in infrastructure, enhanced regional integration, and targeted su!!ort for small and medium enter!rises 3e are focusing on im!ro%ing the road network, e+!anding energy generation and distribution, and building modern rails and !orts so as to create /obs and grow the economy As well, we aim to dee!en our links with our regional !artners 3e are in%esting in and moderni(ing the agricultural sector through im!ro%ed financing and irrigation 3e are ensuring that all Kenyans ha%e access to well&e:ui!!ed health

facilities and well&trained and moti%ated healthcare workers, in addition to de%elo!ing systems to su!!ort and e+!and healthcare and im!ro%ed sanitation 3e will build on our free !rimary and secondary education !olicy, while ensuring the :uality of education is im!ro%ed and the link between education and em!loyment is enhanced %ia knowledge and technology 4ther !riorities include facilitating de%olution, com!leting im!lementation of the Constitution by enacting the remaining legislation aimed at entrenching ci%il liberties, su!!orting county go%ernments, enabling !ublic !artici!ation in decision&making, ensuring di%ersity and gender balance, and enacting regulations to secure effecti%e im!lementation of the !ublic finance management Finally, we are working to %an:uish corru!tion from our shores, we are taking action to combat waste and inefficiency, and we are reforming our !rocurement systems to enhance %alue for money 3e belie%e that these actions will o!en u! economic o!!ortunities for a better future for all Kenyans Madame MD $our %isit accords us the o!!ortunity to initiate discussions on a much more enhanced !artnershi! in the coming months that will hel! u! transit smoothly in a global economy that is becoming increasingly bum!y 'he !rogramme we are concluding under the *+tended Credit Facility has enabled us to restore macroeconomic stability and build resilience against internal and e+ternal shocks .ut we remain %ulnerable to future shocks and we must be able to effecti%ely deal with them if and when they arise 'his brings me to the im!ortant element of our future !artnershi! My country needs an insurance&ty!e facility that can be accessed as and when needed with sufficient resources to effecti%ely deal with !otential shocks Madame MD

Kenya has almost e+hausted the concessional window under the 2o%erty ;eduction and Growth 'rust 3e are therefore looking for an arrangement that can blend these funds with the General ;esources Account ,G;A- to increase a%ailable resource to build an effecti%e buffer Considering the !rogress we ha%e made so far, I belie%e that there is sufficient /ustification for such a !artnershi! but I will lea%e this to you and your staff to !onder My officers from the #ational 'reasury are ready to !ro%ide any information or analysis that may be re:uired to su!!ort this re:uest I thought I should lay out the basic elements of our future !artnershi! as I see it in a more systematic manner Madame MD As I conclude, I note your legendary interest in roses I ho!e that you will find time to look at some of our farms $ou know we grow some of finest roses on the !lanet Considering that you arri%ed here at 1tate "ouse late in the e%ening, I am sure we will miss your ti!s on gardening $our schedule may not also allow you an o!!ortunity for scuba di%ing, but maybe it can be s:uee(ed in your ne+t %isit Madame MD $our style has won you accolades amongst your !eers and IMF member states Calm, cool, !ersistent 3e add, inclusi%e and considerate 3ith calm heads, and !artners like yourself, we need to take uncon%entional decisions to fuel !ros!erity for our !eo!le 'hank you and God bless you all