Madaraka Day: President Ruto hails 20pc rise in shilling as sign of Kenya's economic strength

President William Ruto has announced Kenya has maintained an average annual growth rate of 5 per cent since August 2022, surpassing the global average of 3.3 per cent and the regional average of 3.8 per cent.

“Just last month, the International Monetary Fund projected our GDP to reach $132 billion, making us the largest economy in our region and the sixth largest in Africa,” said Ruto during the 62nd Madaraka Day celebration at Raila Odinga Stadium.

He reported inflation declined sharply from 9.6 per cent in October 2022 to 3.8 per cent in May this year, below the government target of 5 per cent.

“The shilling appreciated by nearly 20 per cent against the US dollar, from Sh 162 to Sh 129, making it one of the best-performing currencies in the world,” Ruto observed.

The Central Bank Rate fell from 13 per cent to 10 per cent, lowering borrowing costs, while foreign exchange reserves now stand at $10 billion, extending import cover from 2.5 to four months.

On housing, Ruto said he handed over keys to the first 1,080 social housing units in Mukuru Estate, Nairobi, and 110 affordable homes in Homa Bay County.

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“We are firmly on course to delivering 150,000 housing units, with 11,000 units already completed,” he said, adding the programme has created over 250,000 jobs.

Ruto explained the government will propose a law reform allowing contributors to access affordable home loans of up to Sh 5 million at single-digit interest rates.

In healthcare, the Social Health Authority (SHA) has registered 23 million Kenyans and disbursed Sh 43 billion in claims to medical facilities.

“Four and a half million Kenyans have received treatment fully covered by SHA,” Ruto said, noting citizens can now access free emergency services in all facilities for the first time in Kenya’s history.

Agricultural outputs surged with fertiliser subsidies boosting food production by 50 per cent. Milk farmers earn Sh 50 per litre, up from Sh 35, while coffee prices increased from Sh 65 to Sh 150 per kilo.

“Tea earnings rose from Sh 138 billion in 2022 to Sh 215 billion in 2024,” Ruto noted. Sugar production surged from 490,000 metric tonnes in 2023 to 815,000 metric tonnes in 2024.

He said the leasing of four state-owned sugar factories aims to inject efficiency in the sector.

On education, the government employed 76,000 new teachers in two years, aiming to add 24,000 by January 2026. Technical and vocational college enrolment is set to quadruple from 500,000 in 2023 to 2 million by year-end.

“The Hustler Fund has supported over 25 million borrowers, disbursed Sh 70 billion, and mobilised Sh 4.5 billion in savings,” he said.

Ruto also announced a Sh 20 billion partnership with the World Bank to launch the National Youth Opportunity Towards Advancement project and committed Sh 5 billion in grants to 100,000 young people.

The Blue Economy currently contributes Sh 36 billion but has the potential to generate Sh 400 billion.

 “We have completed seven modern fish landing sites on the Indian Ocean coast and three on Lake Victoria,” Ruto said.

Five more landing sites are under construction at a cost of Sh 1 billion, with nine new sites planned around Lake Victoria with a budget of Sh 1.5 billion.

The government has established over 4,000 fish cages in Lake Victoria, producing 12,000 metric tonnes annually.

Ruto also highlighted infrastructure achievements, including 1,800 kilometres of new tarmac roads and maintenance of over 134,800 kilometres.

He said construction will begin soon on the dual carriageway from Mau Summit to Rironi, extending through Eldoret to Malaba.