Kenya needs to rein in its debt and current account deficit in order to stabilise economic fundamentals, including the exchange rate, central bank governor Patrick Njoroge said in a presentation to the senate’s finance committee.
The shilling is trading at close to 3-1/2 year lows and down 11.5 percent against the dollar this year, although the central bank has hiked rates 3 percentage points since June.
“The most important measure that is before you is to underscore fiscal prudence in order to restore macro stability. The central bank cannot deal with the entire problem by itself,” Njoroge told the senators on Monday. A recording of the presentation was obtained by Reuters on Tuesday.
