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Kenya's Statement during the Second Committee General Debate on Agenda Item 18 on Macro-Economic Policy Questions

Thursday, 11 October 2018
Presenter: 
Amb. Tom Amolo, Political and Diplomatic Secretary. Ministry of Foreign Affairs
Location: 
New York

Thank you, Mr. Chairman,

1. Kenya aligns this statement with that delivered by Egypt on behalf of the Group of 77 and China, and Morocco on behalf of the African Group. I make the following remarks in my national capacity.

2. My delegation welcomes the Secretary General’s excellent reports on the Macroeconomic Policy Questions under Agenda Item 18 and support the call for transformative change in a sector that is crucial for          our collective prosperity.

Mr. Chairman,

3. Kenya has built its economic prosperity on the management of economic fundamentals which include managing inflation and tight fiscal management by the Central Bank of Kenya. This has ensured the                continuity of prosperity since our independence in 1963 by ensuring free markets, entrepreneurship and freedoms through market forces.

4. In order to enhance social gains, we have prioritized the ‘Big 4 Agenda’ with the objective to enhance manufacturing, provide universal health coverage, provide affordable housing and safeguard food security      and nutrition. This Agenda was set to enhance the ability of the regular citizen to enable them to enjoy the benefits of prosperity. In this regard, Kenya has done well in this pursuit, however, we need to                    enhance social gains. In order to bring services closer to the people, we have devolved services to the 47 counties through ‘Huduma Centres’ which provide a wide array of governmental services in a single          unit within one location in a non-bureaucratic and corrupt-free environment, which has saved many Kenyans time and money.

5. We also strongly believe that we must share prosperity with our neighborhood. Major foreign investment is essential for infrastructure development and the promotion of regional trade liberalization. If we do not      invest in road and rail infrastructure, economies cannot boom, and this, Ladies & Gentlemen is what we are striving to secure. We want to interlink financial infrastructure with roads, railways and IT                          infrastructure to increase investments which would result in huge benefits. Though this is indeed a good thing, the reality is that because these projects require investments, debt is introduced. Kenya is                 nonetheless prudently managing its debt and obligations at sustainable levels in accordance with Kenya’s Public Finance Management Act.

6. One of the threats to enhancing our economic prosperity is the inability of the African people to move freely within the continent. For example, the the average African needs more than 50 visas to travel to most     of the 55 African countries. This makes trade and exchange of goods and services very difficult. We need to change this, we need easy access to each other’s countries to enhance intra-African trade which          stands at only 13%.

7. The African Continental Free Trade Area Agreement (CFTA) is a great thing for the African continent. We encourage those who have not signed this agreement to sign it, as non-tariff barriers continue to                 become an impediment to trade. Through this agreement, African countries will accrue grave economic benefits through a single continental market for goods and services, with free movement of business             persons and investments.

8.  We however note that the international economic environment has become extremely unpredictable. The rules-based system that enabled prosperity and diplomacy to flourish is under threat as there is no             longer any predictability. The rules-based international system should be a cornerstone of ensuring economic growth and prosperity. In Kenya we have managed to establish rules that are inclusive and enable       everyone to benefit. Even a small farmer in the countryside using MPESA, a mobile phone-based money transfer, which provides financing and microfinancing services enables access to investment at the             grassroots level.

9. This, ladies and gentlemen is what we would like to see on a global level. An inclusive and equitable multilateral trading system under the World Trade Organization (WTO), as well as meaningful trade                     liberalization for our countries to succeed in the international system.

Mr. Chairman,

10. Illicit Financial Flows (IFF) is a critical element as it acts as a barrier to the success of economies, which impedes the process of achieving the UN Sustainable Development Goals.

11. If we do not stop the illicit financial flows that suck dry the vitality of our nations through corruption and the like, we will never grow. As a strategic investment, we have given more time and energy to address         corruption including other means of illicit financial flows. It speaks very much to the importance of rules at all levels- nationally, regionally, continentally and globally. We must agree on a set of rules leveraging         on innovation and technology to stop this menace.

12. In June of this year, there was an important High-Level Conference on Counter Terrorism held in New York where counter- terrorism chiefs met to agree on how to better work together to stop the challenges         of terror. This is what we need, we urge the international community to consider such meetings to deliberate over the challenge of IFFs and agree on parameters to deal with these threats. In light of these               challenges, we have signed deals with Switzerland and Britain and are working with other countries as well to curb illicit financial flows.

Mr. Chairman,

13. As I conclude, I would like to stress categorically that the economic prosperity that we seek can only be enabled if there is predictability in the international system. This is not only in political environments but        in systems that manage international trade such as the World Trade Organization (WTO). Similarly, the UN system that worked in 1945 is not dealing with the same challenges in 2018, almost 73 years later.          We must evolve with the changing times and re-align our efforts. The time is now!

I Thank You.