National Treasury Cabinet Secretary John Mbadi has lauded President William Ruto for successfully steering Kenya away from a potential debt default, stabilizing the economy, and ensuring timely loan repayments.
In response to critics who argue that Ruto’s administration has been ineffective since taking office, Mbadi who spoke at the Privatization and Budget People’s Dialogue Forum in Eldoret on Sunday emphasized the precarious fiscal situation Kenya faced when Ruto became president.
“People don’t know where Kenya has come from. The IMF had identified Kenya among six African countries at risk of defaulting on their debts. The other five have defaulted; only Kenya has not,” Mbadi stated.
He detailed the severe consequences nations face when they default, explaining that multilateral lenders like the IMF and World Bank impose strict measures, including drastic salary cuts for public servants and reductions in public service staffing.
“Defaulting on national debt is not like failing to repay a neighbour, M-Shwari, or the Hustler Fund. When a country defaults, the IMF and World Bank step in with tough conditions,” he added.
Mbadi recounted the pressures he faced upon assuming office, particularly the challenge of managing debt obligations while ensuring civil servant salaries were paid.
“When I went to the Treasury Ministry, I lost weight within two months, and this is no laughing matter, I nearly collapsed. The pressure came from walking into the office and reaching the 15th of the following month without having finished paying salaries, while debts kept falling due with no clear source of funds,” he recounted.
He also highlighted specific achievements of the current administration, including the repayment of the 2027 and 2028 Eurobonds and preparations for the upcoming 2031 loan. According to Mbadi, inflation, which stood at 9.6% when Ruto took office, has now fallen below 5%, and foreign exchange reserves have increased to 5.3 months, surpassing the targeted four-month benchmark.
On political matters, Mbadi urged members of the Orange Democratic Movement (ODM) to rally behind their party leadership and President Ruto.
“My party is ODM and my party leader is Dr. Oburu Oginga. What has made ODM what it is today is the respect we have given the party leadership. Everyone has a weakness, and our role is to fortify our new party leader,” he asserted.
Mbadi made a case for the party’s alignment with Ruto in the lead-up to the 2027 elections, stating that the people of Nyanza have already expressed their support.
“Our only route as ODM to leading this country as a party is through working with Dr. William Samoei Ruto. We have no other choice. The people of Nyanza have already decided – they are giving Ruto another term,” he said.
