Kenya plans to cushion effects of global financial crunch

Special Report:Global Financial Crisis

by Daniel Ooko

NAIROBI, Nov. 19 (Chinese media) -- The Kenyan government plans to cushion the

ripple effect of unfolding global credit crunch to counter possible fall in

direct foreign investment into the country.

Kenyan Prime Minister Raila Odinga told local investors during the second

roundtable talks on the National Business Agenda of the need for the public and

private sector to collectively work out modalities to counter the trickle

effects of the tightened global credit conditions.

"It is feared that lower global growth will reduce the demand for African

exports. The tightened global credit conditions are likely to lower direct

foreign investment and may force investors to flee to other areas," he said.

Odinga reiterated the government's commitment to creating a conducive

environment for investment and revealed that the much-anticipated

anti-counterfeit bill 2008 was already on the floor of the house and has

received overwhelming supports from members of the parliament.

He assured the investors at the meeting also attended by several cabinet

ministers that "it is just a matter of time before it becomes illegal to possess

manufacture, sell or hire, exhibit, distribute and import counterfeit goods' in

the country."

The prime minister also gave a progress report on the government's

achievements in meeting goals floated during the first roundtable meeting in

which the business community raised concerns and sought the redress over

operations in some public offices.

He, however, said the victory of U.S. president-elect Barrack Obama marked

the beginning of a new chapter with a myriad of challenges but expressed

optimism that the country had the potential to expand her global business empire

under the new administration.

Odinga said the government had already address the pile-up menace of

shipment cargo at the port of Mombasa after imposing a 24-hour work schedule at

the entry point to ease the congestion of goods at the harbor.

The prime minister told the investors that complaints over delays of

transit goods from the port were ironed out as unnecessary roadblocks were

reduced from initial 47 to 15 but said the number was likely to go down further.

He said the "government has since ensured that customs sealed containers

are immediately checked once effectively. Containerized goods are also weighed

once and sealed to minimize the duration the cargo from the port to their

destinations.

To further counter the cleared cargo pile at the port, Odinga said plans to

lay two standard rail lines that was structured to interlink the Great Lake

region was sealed after all top government officials from incorporated parties

signed the deal.

He said Ethiopia, Uganda, southern Sudan, Rwanda and Burundi had ratified

the rail network one of which would traverse the nation from the proposed Lamu

harbor through Garissa, Addis Ababa, Juba then to Uganda.