Inflation “obsession” hurting Kenyan growth

21 November 2011

Constraints placed on the central bank of Kenya’s monetary policy by the IMF have been condemned as damaging to Kenya’s growth. Writing in Nairobi’s Business Daily in late September, banker Mohammed Wehliye railed against IMF conditions which force the central bank to adopt a monetary policy prioritising low inflation at the expense of credit creation. He argued that “the IMF is not one to worry about our economic growth”. Noting that the IMF’s “obsession” with low inflation had already failed in other African countries, he wrote that Kenya should be free to choose its own economic priorities and not be “locked into the IMF’s preferred ideological straightjacket.”