NAIROBI, Kenya — President William Ruto on Tuesday highlighted what he described as a major turnaround in Kenya’s financial stability, crediting rising domestic savings and stringent debt management for strengthening the country’s economic footing.
Speaking during the release of the Jukwaa la Usalama report, the President said contributions to the National Social Security Fund (NSSF) had doubled within two years, marking what he termed a transition toward long-term financial independence.
Ruto said the fund, which stood at Sh320 billion by December 2022, had now grown to Sh670 billion following the rollout of the new contribution model.
Under the revised structure, both employees and employers contribute 6pc each, significantly boosting monthly inflows.
He projected that NSSF assets could rise to Sh1 trillion by June 2027, providing the government with a domestic pool of capital to finance development projects.
“The money we had collected over 60 years under NSSF was Sh320 billion by December 2022. Since implementing the new model, it has grown to Sh670 billion in just two years — doubling what was collected in 60 years,” said Ruto.
He added that Kenya could, with sustained growth in national savings, reduce or eventually eliminate dependence on foreign lenders. “In the next 10 to 20 years, we will not need to borrow from China or any other country.”
The President linked the growth in national savings to broader fiscal reforms that he said helped avert a looming debt crisis. Kenya had been among African nations flagged as high-risk for default, but Ruto said early corrective measures spared the country from that outcome.
“Today, I can confidently tell you our economy is on sound footing. Had I not made those decisions, we would be among the countries that defaulted on their debts,” he said.
Ruto revealed that when he assumed office, Kenya’s foreign reserves had fallen to US$5.7 billion, a level that raised concerns about the country’s ability to meet external obligations.
He said reforms undertaken since then have increased reserves to US$12.1 billion — the highest in the country’s history — and stabilised the shilling, which has strengthened from Sh167 to Sh129 against the dollar. He further cited declining inflation, from 9.6pc to 4.6pc, as evidence of successful fiscal consolidation.
Economic projections appear to reinforce Ruto’s optimism. The International Monetary Fund’s 2025 World Economic Outlook estimates Kenya’s GDP will rise from US$136 billion in 2025 to US$140 billion in 2026, placing it among Africa’s six largest economies.
Ratings agency Standard & Poor’s recently upgraded Kenya’s long-term sovereign credit rating from B- to B, citing improved fiscal management and a stable outlook.
Despite the positive indicators, analysts caution that long-term success will depend on prudent management of the NSSF’s expanded portfolio.
Transparency in investment decisions, accountability for fund utilisation, and strong regulatory oversight remain essential to safeguard contributors’ savings and ensure sustainable growth.
Still, Ruto insisted the trajectory is positive, arguing that Kenya’s shift from reliance on external lenders to leveraging domestic savings signals a more resilient economic future.
“The long-term benefits outweigh the short-term discomfort,” he said, affirming his commitment to policies he describes as necessary for building a self-reliant economy.
