President William Ruto has defended his administration’s economic reforms, saying Kenya has transitioned from a period of severe financial strain in 2022 to one of stability, lower inflation, and growing investor confidence.
Speaking during the State of the Nation address, he recalled the challenges faced three years ago, when inflation neared double digits, fuel shortages threatened to halt business operations, and the shilling plummeted.
“At a time like this, in 2022 Kenya was in distress. Inflation had soared almost to double digits. A fuel shortage threatened to paralyze our economy as Oil Marketers struggled to access dollars, the shilling was in free fall. Foreign reserves had hit historic lows. Debt service consumed more than half of our revenues,” he said.
Ruto credited the government’s fiscal discipline and strategic reforms for stabilizing the economy.
“Within that context, we acted. We restored fiscal discipline. We eliminated wasteful subsidies, we rationalized public expenditure, we strengthened revenue collection and placed our economy on a path of recovery and sustainability,” he said, noting that inflation has since fallen from 9.6% in 2022 to 4.6% last month, easing the burden on households.
The President also pointed to a stronger shilling, which has remained steady at 129 to the dollar for nearly two years, and the successful redemption of Kenya’s Eurobond as evidence of recovery.
“Our foreign reserves have surpassed 12 billion dollars, the highest in independent Kenya. This has restored certainty, cushioned our economy from external shocks, and restored investor confidence,” he said.
He cited positive assessments from global financial institutions, noting that 14 leading banks, including Citigroup, JP Morgan, Standard Chartered, and Goldman Sachs, project Kenya’s economy will grow between 5% and 5.8% in 2026. Standard and Poor’s has upgraded Kenya’s sovereign credit rating from B minus to a firm B, marking the first upward revision in years and signaling renewed international trust.
Ruto also highlighted domestic economic indicators, pointing to a booming Nairobi Securities Exchange and the registration of over 300 new businesses, including 500 foreign companies.
“This renewed vibrancy is a clear vote of confidence in Kenya's direction and in the reforms we have undertaken,” he said, dismissing critics as “high priests of eternal pessimism” who undermine progress without offering solutions.
The President emphasized that deliberate policy choices, disciplined execution, and strategic reforms have placed Kenya on a sustainable growth trajectory, with stronger economic fundamentals and rising confidence from local and international investors.
