In March 1996, donors expressed satisfaction with Kenya's economic progress. The World Bank is also providing loans for a range of specific projects, including the rehabilitation of the critical Mombasa-Nairobi road. Although Kenya has made substantial economic progress, further reforms are necessary if it is to increase its GDP growth rate. Government plans for additional reforms include further privatization of public companies, downsizing of government, and reductions in tariffs. Kenya's infrastructure is in urgent need of rehabilitation, although the government has recently begun to take some steps to address the problem.
Corruption remains a major problem.
Nairobi continues to be the primary hub of East Africa with the region's best transportation linkages, communications infrastructure, and trained personnel. A wide range of foreign firms maintain regional branch or representative offices in the city. The EAC's objectives include harmonizing tariffs and customs regimes, free movement of people, and improving regional infrastructures. Despite internal tensions in Sudan and Ethiopia, Kenya has maintained good relations with its northern neighbors. Recent relations with Uganda and Tanzania have improved as the three countries work for mutual economic benefit.