Despite warnings from experts about potential challenges in 2024, Kenya's economy is showing signs of recovery, if statements from top officials are to go by.
A statement by Rebecca Miano, Cabinet Secretary of the Ministry of Investments, Trade and Industry, highlighted positive growth indicators. Her comments on March 14 align with President William Ruto's statement that he is responsible for steering the economy away from troubled waters.
President Ruto, speaking at a roadside rally in Kericho town, took credit for pulling the economy out of dire straits, referencing the decrease in the US dollar price against the Kenyan shilling as evidence of progress.
He stated, "Kenya’s economy was in the trenches but I have saved it. Now, as you can see, even the dollar price has gone down and things are in order."
Rebecca Miano highlighted other positive economic indicators, including the settlement of Eurobond maturities, the strengthening of the Kenyan shilling, and consistent drops in petroleum pump prices. She remarked, "The economy turned the tide, and we are on track to delivering the Kenya Kwanza Plan."
Efforts to boost Foreign Direct Investments (FDIs) and expand markets for Kenyan goods are being emphasized, focusing on proper coordination and continuous appraisals among relevant stakeholders.
Miano urged commercial attachés stationed across various missions to play a crucial role in identifying markets, negotiating trade agreements, and informing local producers about market trends.
President Ruto's government has faced criticism for tax hikes and the introduction of new levies, which he defended as necessary steps to control debt levels.
Ruto stressed the importance of reducing reliance on borrowing and utilizing local interventions and revenue for development.
Despite positive indicators, challenges persist. High operating costs and uncompetitive taxes have led to the closure of around 2,000 companies in the last financial year, according to data from the Business Registration Service (BRS).
Additionally, a downturn in private household loans reflects the impact of high-interest rates set by the Central Bank of Kenya.
Looking ahead, the National Treasury and Planning Ministry forecasts a 5.5% growth for the fiscal year. Adjustments in budget allocations aim to address fiscal deficits, with increased emphasis on domestic financing and investment.
