October 18, 2017 / 1:41 PM / a month ago

Kenya faces high political uncertainty but institutions stronger: CenBank Gov

LONDON (Reuters) - Political uncertainty is high in Kenya following the annulment of the August presidential elections, the country’s central bank governor said on Wednesday, but political and judicial institutions have emerged stronger in the process.

Kenya Central Bank Governor Patrick Njoroge addresses delegates during the launch of the first mobile-phone-based government bond, called M-Akiba, at the Treasury building in Nairobi, Kenya March 23, 2017. REUTERS/Thomas Mukoya

“The current state of affairs is one of high uncertainty, but I think the point here is that it is all political uncertainty, based on recent announcements by the supreme court and the sequence of events that followed that,” Central Bank Governor Patrick Njoroge told Reuters in an interview.

“I see it as a mark of maturity of the democratic process,” he added.

Speaking on the economic impact of the current situation, Njoroge said that the central bank was in the process of revising down its growth forecast, adding the recent drought had been another factor in slowing down economic expansion.

“We still think there isn’t a precipitous collapse in growth, on the contrary we still believe that we will have growth rates above 5 percent,” he said, speaking on the sidelines of a FT Live conference.

He added the central bank was committed to the flexible exchange rate policy, but had smoothened out excess volatility every now and then.

Reporting by Karin Strohecker Editing by Jeremy Gaunt

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