NAIROBI, Kenya— President William Ruto on Sunday defended his administration’s economic strategy, citing steady growth, declining inflation, and a strengthening shilling as evidence that Kenya is firmly on the path to economic recovery.
Speaking during the 62nd Madaraka Day celebrations held in Homa Bay County, President Ruto highlighted a series of economic milestones that he said position Kenya as a regional economic leader.
“Kenya has recorded an average annual growth rate of 5% since August 2022, outperforming the global average of 3.3% and the regional average of 3.8%,” the Head of State said.
Ruto asserted that the International Monetary Fund (IMF) projects Kenya’s GDP will reach $132 billion (Sh17 trillion), making it the largest economy in the East African region and the sixth-largest in Africa.
He attributed the gains to “bold reforms and strong economic fundamentals,” pointing specifically to the country’s significant drop in inflation from a high of 9.6% in October 2022 to 3.8% in May 2025.
This has been backed by recent data from the Kenya National Bureau of Statistics (KNBS), which showed the annual inflation rate eased to 3.8% in May from 4.1% in April, despite persistent price pressures on essential food items.
According to the KNBS, the Consumer Price Index (CPI) rose slightly from 144.09 in April to 144.88 in May, translating to a monthly inflation rate of 0.5%.
Other positive indicators mentioned by the president include a 20% appreciation of the Kenyan shilling against the US dollar, a reduction in the Central Bank Rate from 13% to 10%, and a rise in foreign exchange reserves to $10 billion, enough to cover four months of imports.
Beyond macroeconomic numbers, Ruto lauded the progress of his government’s Affordable Housing Programme as a cornerstone of inclusive growth and national transformation.
He pointed to the recent handover of 1,080 social housing units in Nairobi’s Mukuru Estate as a tangible outcome of the administration’s commitment to addressing urban housing needs.
This year’s Madaraka Day celebrations came amid mixed public sentiment, with citizens grappling with rising living costs despite the reported macroeconomic improvements.`
