NAIROBI, Kenya — In a Cabinet meeting chaired by President William Ruto at State House on Friday, government leaders reviewed Kenya’s recent economic strides and celebrated a period of financial stability marked by falling inflation, resilient economic growth, and stronger foreign reserves.
The meeting also underscored new policies and initiatives aimed at bolstering Kenya’s socioeconomic development.
Members were briefed on a significant drop in the inflation rate, which fell to 2.7% in September, marking its lowest point since 2007 under President Mwai Kibaki’s administration.
This is a notable shift from the 9.6% rate recorded a year ago. The decline aligns with fiscal targets set in Ruto’s Kenya Kwanza Manifesto and has translated into decreased prices for essential goods.
For instance, a 2kg packet of maize flour now costs KSh124, down from KSh176 a year prior.
The Cabinet attributed the food price reductions to strategic government programs, particularly the subsidized fertilizer initiative that has allowed farmers to expand crop production.
Officials stated that staple stocks are now secure, with nearly 95 million bags of maize and sufficient reserves of beans, rice, and wheat.
Notably, Kenya has achieved self-sufficiency in sugar production for the first time, eliminating the need for imports this year.
Kenya’s foreign reserves have surged to an all-time high of $9.5 billion, or 4.4 months of export cover, which provides a critical buffer for the economy amid global uncertainties.
Meanwhile, Kenya’s GDP growth has remained strong, hitting 5.6% in 2023, with projections of 5% growth this year and a return to 5.6% in 2025.
The Kenyan shilling has also shown resilience, stabilizing at KSh129 to the dollar following a 20% appreciation earlier this year, easing external debt obligations.
The meeting also reviewed labor migration developments, with the Ministry of Labour reporting that over 105,000 Kenyans secured international jobs since July.
Kenya recently signed bilateral labor agreements with Germany and Austria, adding to a list of job destinations that includes Australia, Qatar, Canada, the UK, and Northern Ireland.
Recruitment drives targeting various professions, from healthcare to teaching, will soon be conducted nationwide to fill roles in these countries.
The Cabinet received updates on the Social Health Insurance Fund, noting that over 14 million Kenyans have now registered with the Social Health Authority.
Meanwhile, the government has cleared KSh5 billion in debt to hospitals, easing pressure on the National Hospital Insurance Fund (NHIF) and enhancing health access across Kenya.
Further, in a move to improve technical education, the Cabinet approved the upgrading of five Technical Training Institutes to National Polytechnics, raising the number of such institutions to 28.
Institutions in Murang’a, Meru, Nandi, Nairobi, and Vihiga counties are slated for upgrades.
Among other decisions, the Cabinet approved the transfer of Amboseli National Park to Kajiado County and moved to ratify a global agreement on marine biodiversity.
President Ruto also welcomed Deputy President Kithure Kindiki to his inaugural Cabinet meeting in his new role, congratulating him on his recent appointment.
The meeting also underscored new policies and initiatives aimed at bolstering Kenya’s socioeconomic development.
Members were briefed on a significant drop in the inflation rate, which fell to 2.7% in September, marking its lowest point since 2007 under President Mwai Kibaki’s administration.
This is a notable shift from the 9.6% rate recorded a year ago. The decline aligns with fiscal targets set in Ruto’s Kenya Kwanza Manifesto and has translated into decreased prices for essential goods.
For instance, a 2kg packet of maize flour now costs KSh124, down from KSh176 a year prior.
The Cabinet attributed the food price reductions to strategic government programs, particularly the subsidized fertilizer initiative that has allowed farmers to expand crop production.
Officials stated that staple stocks are now secure, with nearly 95 million bags of maize and sufficient reserves of beans, rice, and wheat.
Notably, Kenya has achieved self-sufficiency in sugar production for the first time, eliminating the need for imports this year.
Kenya’s foreign reserves have surged to an all-time high of $9.5 billion, or 4.4 months of export cover, which provides a critical buffer for the economy amid global uncertainties.
Meanwhile, Kenya’s GDP growth has remained strong, hitting 5.6% in 2023, with projections of 5% growth this year and a return to 5.6% in 2025.
The Kenyan shilling has also shown resilience, stabilizing at KSh129 to the dollar following a 20% appreciation earlier this year, easing external debt obligations.
The meeting also reviewed labor migration developments, with the Ministry of Labour reporting that over 105,000 Kenyans secured international jobs since July.
Kenya recently signed bilateral labor agreements with Germany and Austria, adding to a list of job destinations that includes Australia, Qatar, Canada, the UK, and Northern Ireland.
Recruitment drives targeting various professions, from healthcare to teaching, will soon be conducted nationwide to fill roles in these countries.
The Cabinet received updates on the Social Health Insurance Fund, noting that over 14 million Kenyans have now registered with the Social Health Authority.
Meanwhile, the government has cleared KSh5 billion in debt to hospitals, easing pressure on the National Hospital Insurance Fund (NHIF) and enhancing health access across Kenya.
Further, in a move to improve technical education, the Cabinet approved the upgrading of five Technical Training Institutes to National Polytechnics, raising the number of such institutions to 28.
Institutions in Murang’a, Meru, Nandi, Nairobi, and Vihiga counties are slated for upgrades.
Among other decisions, the Cabinet approved the transfer of Amboseli National Park to Kajiado County and moved to ratify a global agreement on marine biodiversity.
President Ruto also welcomed Deputy President Kithure Kindiki to his inaugural Cabinet meeting in his new role, congratulating him on his recent appointment.
