SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING THE CORPORATE COUNCIL ON AFRICA, COCA COLA AND EAST AFRICA GENERAL MOTORS LUNCH, NEW YORK, 24TH SEPTEMBER, 2008

Ladies and Gentlemen,

I wish to begin my remarks by expressing my sincere gratitude to the Corporate Council on Africa, Coca Cola and General Motors East Africa for hosting me and my delegation this afternoon. 

The wonderful food and company that we have enjoyed today has revived fond memories of a similar occasion we had five years ago.  I wish to thank all of you for your hospitality on this occasion.

I am aware, ladies and gentlemen, of your deep concern for Kenya, and Kenyans.  I know that you were deeply disturbed, as were all of us, by the post election events in Kenya.  The business community was severely affected by the worst political crisis Kenya has faced in its history.  Many small and even large businesses lost workers, property, and sales as a result of the unfortunate events. 

Despite this, let me point out that the unquenchable will of the Kenyan people for peace and reconciliation, ensured a peacefully negotiated outcome. 

It is rarely the case that such events are resolved so quickly, and we must therefore credit the people of Kenya, as well as our African and international friends for making it possible for us to achieve a quick solution to the political crisis.

Further, the formation of the Grand Coalition Government enabled us to accommodate various political interests, thus enhancing peace and reconciliation, and ensuring a quick return to political, social, and economic stability in the country.

Since then, we have continued to make good progress.  Although the idea of a Grand Coalition is new to Africa, we in Kenya as pioneers are making it work fairly effectively.  We have put in place sufficient consultative structures and forums to ensure a general consensus on difficult political and policy issues. 

These measures have enabled us to undertake a successful resettlement of Internally Displaced Persons, setting up of Commissions to inquire into the electoral process and causes of post-election violence, as well as undertaking a commitment to deliver a new constitutional dispensation within a year. 

We are also dealing with matters of national cohesion through the passage of laws aimed at promoting ethnic integration, while the adoption of a new land policy and the setting up of a Truth, Justice and Reconciliation Commission are expected to launch a process that will promote healing and tolerance among our diverse communities.

Ladies and Gentlemen,
On the economic front, we have harmonized all the policies and programmes of the main political parties into the Vision Twenty Thirty, and the first five-year plan.  We have a consensus on all major economic and social development policies and programmes. 

As investors, I want to promise you that our economic policies will be credible, consistent, and predictable, so that you are able to make long- term decisions.

Indeed, our credit ratings by Standard & Poors and Fitches are good, and compete with those of the top African countries.   In other words, our financial markets and institutions remain quite stable and dependable, despite the current difficulties being faced in key global markets.

With regard to infrastructure, which is a major concern for many of you, we have resolved to give this matter the highest policy priority.  We are dealing with each of the bottlenecks systematically. 

The port of Mombasa management is being strengthened, the hours of operation have been increased to 24, and the efficiency of the port’s operations is being pushed upwards to international best practices. 

The railway is also being addressed, through efforts to revitalize the current concession.  Nevertheless, we are considering other possibilities including a new regional railway network for East Africa.

We have begun a major roads rehabilitation and construction programme that will bring the national network to a good maintenance position over the next five years.

With regard to energy, we are investing heavily in geothermal and wind energy, as well as connectivity to Ethiopia.  This is expected to lower national electricity charges and improve Kenya’s competitiveness in manufacturing. 

The telecommunications sector is also growing rapidly and we expect to have fibre optic connectivity within the next two years, making Kenya the next frontier for Americans keen to invest in outsourced services.

The Vision Twenty Thirty itself has many flagship projects including resort cities at the Coast and inland, the development of a free port in Mombasa, the development of a new transport corridor from Lamu to Southern Sudan and Ethiopia, and establishment of special economic zones in different parts of the country. 

All of these provide excellent investment opportunities for each one of you as investors or potential investors in Kenya.

We are aware that to achieve these objectives, our capital markets must become more sophisticated and better at attracting local and international capital. 

We are therefore proposing to launch infrastructure financing bonds within this financial year.  In addition, we are soon completing the regulatory and institutional framework for public-private partnerships. 

In conclusion, Ladies and Gentlemen,
I would like at this point to appreciate those of you whose faith in Kenya has remained steadfast even during the tough times.  In this respect, I wish to acknowledge General Motors East Africa for remaining confident in Kenya for over three decades. 

I also want to acknowledge Coca Cola’s confidence and commitment to Kenya.  The company recently opened a 50 million dollar office complex which I had the pleasure to inaugurate in the presence of its Chief Executive who flew into Kenya for the occasion.

I also want to commend Citibank, AIG, and all the other investors who have continued to maintain confidence in Kenya.  Kenya’s future is bright, despite what happened earlier this year.  The economy is making good progress towards recovery with growth figures for this year being constantly revised upwards.
For instance, early this year, the economic growth rate was estimated at 3.5 percent, down from last year’s 7 percent.  However, some analysts now believe that we will probably attain a growth rate of between 4.5 and 6 percent. 

Indeed, there are few countries in Africa that are so resilient in the face of adversity, or so full of opportunities for American investment.

I urge you as investors to take note of this positive characteristic of Kenya’s business culture and environment.  I want to encourage you all to join us in our journey of building one of Africa’s most prosperous and stable countries.

Thank You Very Much and God Bless You All.