NAIROBI, Kenya- President William Ruto has reiterated his administration’s commitment to curbing inflation and propelling Kenya’s economy forward.
During the Ministerial Performance Contract signing ceremony at State House on Tuesday, the President underscored his government’s dedication to delivering the Bottom-Up Economic Transformation Agenda.
Kenya’s economy is showing positive signs of recovery. Inflation dropped to 2.7pc in October 2024, a sharp decline from its peak of 9.6pc in September 2022.
This marks the lowest inflation rate since 2007, providing much-needed relief for households grappling with high living costs.
President Ruto highlighted the falling prices of staples such as maize, beans, and peas, attributing the trend to strategic government interventions.
In addition, foreign exchange reserves at the Central Bank of Kenya hit a record high of $9.5 billion, equivalent to 4.4 months of export cover.
This achievement was bolstered by an IMF loan of $606.1 million approved in late October, which has significantly strengthened the shilling and enhanced external reserves.
Kenya continues to defy regional economic challenges, with a GDP growth rate of 5.6pc in 2023 and a projected 5pc growth this year.
The International Monetary Fund (IMF) forecasts a steady rise to 5.6pc in 2025, further solidifying Kenya’s position as one of the fastest-growing economies globally.
The President emphasized that this resilience, despite global socio-economic pressures, is a testament to the government’s fiscal policies.
The decline in interest rates, coupled with an 11.5pc increase in tax revenue collections by the Kenya Revenue Authority (KRA), is creating fiscal space and reducing domestic borrowing costs.
During the signing event, President Ruto urged Cabinet and Principal Secretaries to uphold high standards of service delivery in line with constitutional mandates.
“Citizens expect us to deliver exceptional service. This is a responsibility we must honor collectively and individually,” he stated.
The performance contracts follow the Cabinet’s acknowledgment of an economic turnaround, attributing recent gains to deliberate reforms over the past two years.
“We’ve set Kenya on a path of renewal, marking the start of a new economic era,” the Cabinet noted in its November 14 report.
As Kenya’s economy gains momentum, the government’s focus on inflation control, economic expansion, and public accountability offers hope for sustained progress.
