NAIROBI, Kenya, Aug 4 – Former Central Bank of Kenya (CBK) Governor Eric Kotut has said Kenya was forced to liberalize its economy after the 1992 General Election when development partners froze funding, sharply reducing foreign financial inflows.
Speaking during the CBK Governors Series, Kotut said the government reached an agreement with donors to implement wide-ranging economic reforms, including the abolition of exchange controls and import licensing.
“After the elections and the formation of the new government, a review of the situation was made together with donors and it was agreed government agreed to totally liberalize the economy,” Kotut said.
“So they abolished exchange control, they abolished import licensing, they abolished many things.”
Kotut added that the reforms coincided with political changes, including the repeal of Section 2A of the Constitution, which ended the one-party system and paved the way for the formation of opposition political parties.
“But it started with one party. It was called Ford,” he said.
