Kenya. According to
Countryaah official website, the economic crunch continued from an already
catastrophic level, and the government sent unclear signals
about its ambitions to overcome the problems and restore the
world's confidence in K. As a remission to the World Bank,
in July, Nature Conservation Chief Richard Leakey, formerly
one of President Daniel arap Moi's chief, was appointed
critics, to the head of state administration with the
mission of increasing efficiency and fighting corruption.
Between 60,000 and 120,000 government services were
estimated to be phased out, but Moi said in September that
there would be no layoffs at all. In April, when Moi resumed
his post as Vice President, who had been vacant for just
over a year, he elected George Saitoti, a man from the old,
suspicious elite. Saitoti was Vice President until 1997 and
Finance Minister in 1983-92.
A decision to reduce the number of ministries from 27 to
15 was regarded as a cosmetic change, as the number of
ministers was unchanged and a number of people from the
closest circle around Moi were allowed to remain.
The budget deficit increased during the year, growth
slowed and the state lagged behind with the repayments on
the external debt. Capital flight increased dramatically in
September, as investors' confidence in the Nairobi Stock
Exchange declined. Since the beginning of the year, the
stock market index had fallen by 18%.