NAIROBI, Kenya – President William Ruto has announced that Kenya will require at least Sh5 trillion to realise his administration’s plan of transforming the country into a first-world economy within the coming decade.
Delivering the State of the Nation Address in Parliament on Thursday, the President said the government will anchor the transition on four key pillars: investing in people, transforming the economy, expanding energy production, and overhauling the transport and logistics network.
Investing in People
Ruto said his administration has laid the groundwork through major reforms in the education sector, including increasing the national education budget from KSh490 billion in 2021 to KSh700 billion this year.
He noted that the expanded funding has improved infrastructure, boosted recruitment of teachers and trainers, and strengthened universities and technical colleges — part of a broader push to scale up STEM programmes and promote research and innovation.
Economic Transformation
The President reaffirmed his goal to shift Kenya from a net importer to a net exporter of goods and services, saying the country spends an average of KSh500 billion annually on agricultural imports.
He cited ongoing efforts to cut food imports — including interventions in maize, sugar, edible oil, rice and wheat — but warned that the limits of rain-fed agriculture continue to undermine progress.
To address this, the government plans to construct 50 mega dams and 200 medium and small dams, targeting at least 2.5 million acres under irrigation within five to seven years.
Energy Expansion
Ruto said Kenya currently generates just 2,300 MW of electricity, far below the administration’s target of 10,000 MW needed to power a modern, technology-driven economy.
He stressed that increased energy production is critical for industrialisation, digital transformation, and international competitiveness.
Transport and Logistics Overhaul
The President outlined an aggressive infrastructure plan aimed at positioning Kenya as East and Central Africa’s commercial and aviation hub.
His administration targets dualing 2,500 kilometres of highways and tarmacking 28,000 kilometres of roads over the next decade.
Entry points including JKIA, the Port of Mombasa, and the Port of Lamu will undergo major upgrades through public-private partnerships.
He further announced that the Standard Gauge Railway (SGR) will be extended from Naivasha to Kisumu and onward to Malaba, with construction slated to start in January 2026.
Financing the Transformation
Ruto said the multi-trillion-shilling plan will be financed through the National Infrastructure Fund (NIF) and the Sovereign Wealth Fund (SWF).
The NIF will optimise budgeted resources while leveraging private capital, privatisation, and capital markets.
The SWF will pool proceeds from natural resource royalties and the privatisation of national assets.
Ruto added that he had discussed the long-term vision with former Prime Minister Raila Odinga and former President Uhuru Kenyatta, both of whom stressed the importance of infrastructure, energy and food security in industrialisation.
The President urged Parliament, the private sector, and development partners to rally behind the blueprint, saying Kenya has a chance to take a decisive leap into first-world status.
