Kenyan President William Ruto delivered a sweeping victory report on the national economy yesterday, confirming that the country has officially exited the “danger zone” of sovereign default. Speaking at the 19th Ambassadors and High Commissioners’ Conference, the President stated that Standard & Poor’s (S&P) upgrade of Kenya’s credit rating from B- to B is a “credible affirmation” of his government’s financial strategy and market confidence. This shift is considered a major turning point, especially compared to the concerns 36 months ago when Kenya was ranked among six African nations predicted to default on their foreign debt.
Addressing over 70 diplomats and consular leaders, President Ruto recalled, “Out of those six countries, five defaulted; Kenya did not.” He further explained that this economic recovery resulted from “deliberate and difficult policy choices,” including the controversial removal of consumption subsidies and the streamlining of budget utilization.
The primary evidence of this recovery is the surge in foreign exchange reserves, which grew from $5.7 billion (2.5 months of import cover) in 2022 to $14.6 billion (7.5 months of import cover). The President predicted this figure would reach $16 billion within the next 60 days.
The report also detailed a rare period of currency stability, noting that the Kenyan Shilling has remained steady at approximately 129 shillings per dollar for the past two years. This has reportedly created a reliable investment environment for more than 300 multinational companies operating in the country.
Highlighting that Kenya is now the 6th largest economy in Africa, the President noted that the nation’s Gross Domestic Product (GDP) has reached $136 billion, inflation has dropped to 4.3%, and Foreign Direct Investment (FDI) grew by 15% as key successes.
Beyond financial stability, the President presented a $40 billion National Transformation Plan, an ambitious infrastructure agenda that includes constructing 2,500 kilometers of dual carriageways and increasing energy capacity from 3,300 MW to 10,000 MW.
Additionally, he mentioned that the Social Health Authority has registered over 30 million members and that the Affordable Housing Programme has created over 640,000 jobs for Kenyan youth. The President concluded by saying, “The direction we have taken is no longer a matter of debate; the markets have spoken, and the results are clearly visible in the pockets of our people and the strength of the Shilling.”
