President William Ruto has attributed the improved investor confidence in Kenya to his administration’s strategic fiscal interventions which have helped stabilized the economy since assuming office three years ago.
In his third State of the Nation Address before a joint Parliament, President Ruto said the interventions have supported recovery efforts as adding $21 billion to the economy which grew from $115 billion and ranked 8th in Africa to $136 billion and ranked 6th.
“This steep rise is no accident. It is the product of deliberate choices, disciplined execution, and strategic reforms that have strengthened our economy and unlocked its potential,” Ruto told legislators.
According to the president, his government has been able to address debt pressure which was straining development as debt service consumed more than half of all ordinary revenues.
In a move to restructure the country’s debt, the administration has overseen three Eurobond buybacks as part of its liability management strategy.
In February last year, Treasury raised $1.5 billion in the international market to pay part of the $2 billion Eurobond which was maturing at the time.
This year alone, treasury has floated two Eurobonds, one in February and another in October totaling $3 billion which have been used to clear outstanding Eurobonds and extended repayment periods.
“Our successful Eurobond redemption signalled to the world that Kenya honours its obligations,” said Ruto.
President Ruto said the interventions have contributed to the drop in inflation rate from 9.6pc in 2022, to 4.6pc as of last month while the shilling which was on a free fall has stabilized at Ksh 129 to the dollar.
“Our foreign reserves have surpassed $12 billion, the highest in independent Kenya. This has restored certainty, cushioned our economy from external shocks, and restored investor confidence,” he noted.
During the period, Kenya’s foreign direct investment (FDI) rose from Ksh 60 billion ($463m) in 2021 to Ksh 195 billion ($1.5b) last year while at least 300,000 new businesses including 500 foreign companies have registered
and set up shop in Kenya.
