Kenya inflation 'not a risk'

May 28, 2010

There is no risk of inflation in Kenya, the Governor of the country's central Bank has said in an interview with Reuters.

Speaking to the news agency yesterday (May 27th) at the African Development Bank's Annual Meeting in Abidjan, Njuguna Ndung'u said "there is no threat of inflation" in the nation.

"We'd like to strengthen fragile growth, through measures that will be announced in the [government] budget in the two weeks," he added.

The Kenya Monetary Policy Committee maintained the Central Bank Rate at 6.75 per cent last week and Mr N'dung'u said it intents to wait and see how the market reacts to the expected increases in household borrowing and investment before making its next decision.

He also spoke of his concern about the exposure of the Kenya shilling to the debt crisis in Europe, warning the country's currency is becoming "unstable".

Mr Ndung'u is one of a number of high-level officials attending the AfDB's Annual Meeting, which began yesterday.