President William Ruto has painted the picture of a Kenyan economy that is on a positive growth trajectory, even as he admitted that a majority of Kenyans are going through tough times.
In his State of the Nation address in the National Assembly, indicated that Kenya had made significant progress in reducing its huge foreign debts while balancing it with domestic needs.
“It is undeniable that, for many Kenyans, times are hard and the struggle to meet their daily basic needs remains daunting," said Ruto.
He added: “Today, I am proud to report that all macro-economic indicators point to a positive turnaround and an upward trajectory."
He admitted his administration needs to do a lot more to overcome hurdles continues to face, some exacerbated by global factors, including security, geopolitical tensions and climatic challenges.
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“The country’s total debt burden was not only immense, but it was also stacked up in a most burdensome manner, leaving little to no room for investment in public services or development of critical infrastructure."
In light of these mounting challenges, President Ruto stressed the tough decisions his government has had to make, including drastically cutting expenditure and mobilising domestic resources.
Almost halfway into his administration, the Head of State expressed optimism the economy will bounce back from the turmoil it has been facing to give struggling Kenyans some form of reprieve.
"We have not been watching helplessly and doing nothing as adversity took a toll on the economy and undermined the livelihoods and well-being of the people.
“On the contrary, we have been working tirelessly to steer the country away from the brink of unprecedented economic collapse and onto a more promising trajectory."
The president has enumerated how measures undertaken by his Kenya Kwanza government through the Bottom-Up Economic Transformation Agenda (BETA) have started to bear fruit.
"The shilling has stabilised significantly, appreciating from Sh162 to the dollar in February 2024, to Sh129 today, a remarkable gain of 20 per cent," he said, explaining this has restored investor confidence in the financial markets while also reducing the cost of servicing external debt.
According to President Ruto, various remedial measures taken by his administration have also seen inflation drop from 9.6 per cent in September 2022 to 2.7 per cent in October 2024.
This decline, he noted, was driven by favourable weather and the government's support for farmers across the country, which helped reduce the cost of essential foodstuffs like maize and beans.
He added that Kenya’s foreign exchange reserves increased by $2.4 billion to $9.5 billion by October 2024 providing a 4.8-month import cover, the highest in 10 years, shielding the country from global economic shocks.
Other signs of positive economic momentum, he says, include declining interest rates, which have eased the cost of borrowing, and an 11.5 per cent growth in tax revenues in the year to June 2024.
He projected an economic growth of 5 per cent in 2024 and 5.6 per cent in 2025 after posting a 5.6 per cent growth in 2023 expressing optimism of a future that will ease pressure on Kenyan pockets.
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