Tuesday, December 02,
2025 - President William Ruto has attributed Kenya’s economic recovery to
what he termed as “painful but necessary decisions”
Speaking at State House on Tuesday while receiving the Jukwaa
la Usalama report, Ruto said Kenya had been weighed down by ballooning
external debt, with foreign reserves dwindling to $5.7 billion.
He recalled convening a meeting at “office number 6” where
he resolved that Kenya will not join the list of six African nations predicted
to default.
“Today I can confidently tell you our economy is on sound
footing. Had I not made those decisions, we would be among the countries that
defaulted,” he stated.
The President highlighted that reserves have since risen to
$12.1 billion, the highest in Kenya’s history, while inflation dropped from 9.6
to 4.6 percent.
He also noted the shilling’s recovery from Ksh.167 to
Ksh.129 against the dollar.
The International Monetary Fund’s October 2025 World
Economic Outlook projects Kenya’s GDP at $140 billion (Ksh.18 trillion) in
2026, ranking sixth in Africa.
This marks an increase from $136 billion in 2025.
Global ratings agency Standard & Poor’s recently
upgraded Kenya’s long‑term sovereign credit rating to ‘B’ from ‘B‑’, citing
reduced external liquidity risks, stronger coffee exports, and robust diaspora
remittances.
S&P also pointed to Kenya’s $1.5 billion Eurobond
issuance and buy‑back in February 2025, which lowered annual repayments to $108
million over 2025‑2027, down from $300 million previously.
Ruto maintained that while the decisions were tough, “the
long‑term benefits outweigh the short‑term pain.”
The Kenyan DAILY POST
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