Kenya finally to get IMF loan

Kibaki came to power promising a crack down on corruption

The International Monetary Fund (IMF) has backed a $35m (£19m) loan to Kenya, with the loan scheduled for December, seven months later than planned.

The loan is part of a $252.75m three-year deal with the IMF, sealed when President Mwai Kibaki promised to revive Kenya's struggling economy.

The cash had originally been due in May, but slow progress in the fight against corruption prompted the delay.

The IMF now says it is pleased with the coalition government's recent action.

'Doing well'

Soon after coming into power in December 2002, the strength of the Kenyan coalition's resolve to fight corruption came into question.

The IMF gives you credibility, that is what we have received today David Mwiraria, finance minister

The NARC coalition was accused of doing far too little to prosecute crooked officials and the start of the latest IMF loan talks coincided with the resignation of a senior Kenyan anti-corruption official.

Now, the IMF has said it is happy with the government's establishment of the Kenya Anti-Corruption Commission, which it describes as credible and free of political interference.

The Kenyan government is happy about the IMF endorsement.

"The endorsement by the IMF means that we are doing well, notwithstanding whatever has been said about our economic reforms," said Kenyan finance minister David Mwiraria.

"The IMF gives you credibility, that is what we have received today."

Nevertheless, the IMF team stressed that it still had concerns over the Kenyan government's ability to pass "critical" economic legislation concerning the privatisation of state firms.

It also urged Kenya to tighten its monetary policy following a steep rise in inflation brought on by drought and rising oil prices.