Kenya: Ruto Affirms Commitment to Sustain Economic Growth

President William Ruto has reaffirmed the government’s commitment to containing inflation and driving economic growth.

Speaking during the Ministerial Performance Contract signing at State House on Tuesday, Ruto emphasized that delivering the Bottom-Up Economic Transformation Agenda remains a top priority for his administration.

“I am committed to honoring that trust and Cabinet Secretaries should equally do their part as set out in their terms of appointment and as demanded by the constitution, the law of Kenya and the electorate,” Ruto asserted.

The Head of State underlined the need to enhance service delivery to citizens, a requirement he noted is guaranteed under the Constitution.

“These provisions along other laws enacted under them, when receiving public services define the expectations and entitlement of Citizens,” The President said.

“For us, they set the standard we must uphold at all times in our performance individually, and also collectively,” he told Cabinet Secretaries and Principal Secretaries.

The performance contract signing came a week after the Cabinet reported positive macroeconomic indicators which Cabinet Office said pointed to an economic turnaround.

“The Cabinet noted that the administration’s efforts over the past two years to turn around the economy had successfully set the country on a path to renewal, marking the start of a new era of economic renaissance,” the Cabinet Office reported on November 14.

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Easing inflation

The statement highlighted a significant drop in inflation, which declined to 2.7 per cent in October, down from a peak of 9.6 per cent in September 2022–the lowest inflation rate since 2007.

President Ruto noted that the prices of staple foods, such as maize, beans, and peas, had decreased over the past year.

Additionally, foreign exchange reserves at the Central Bank of Kenya have reached an all-time high of $9.5 billion, reflecting an increase of $2.4 billion and equivalent to 4.4 months of export cover.

The reserves have been on an upward trajectory since September, bolstered by the International Monetary Fund’s (IMF) approval of a $606.1 million loan to Kenya on October 31.

Ruto also indicated that Kenya’s economic growth remains robust, ranking among the highest globally, with 5.6 percent growth in 2023 and projections of 5 percent growth this year and 5.6 percent next year.

The IMF has projected Kenya’s real gross domestic product (GDP) growth to reach 5 per cent in 2024 and 2025, noting that the economy remains resilient, with growth surpassing the regional average.

Inflation is decelerating, and external inflows are supporting the shilling while building external reserves, despite challenging socio-economic conditions.

The Cabinet reported a positive trend in interest rates, noting that their decline will reduce domestic borrowing costs and create fiscal space.

Additionally, Cabinet noted Kenya Revenue Authority’s (KRA) tax collections had grown by 11.5 per cent, marking a double-digit growth.

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