William Ruto Assures Kenya Is Secure From Foreign Debts

• President William Ruto highlighted the interventions taken by his administration to ease pressure on the economy in 2023
• Ruto noted that the country is now secure from foreign debts thanks to measures such as increased taxation
• The head of state said the interventions will be doubled in 2024 to safeguard Kenya's sovereignty and independence

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

President William Ruto has praised the strides made by his administration to revive the economy in 2023.

Ruto applauded Kenyans for bracing the high cost of living and economic turbulence to take the country to a secure space.

Speaking during the New Year address at State House Nakuru on Sunday, December 31, the president took pride in the country's growing Gross Domestic Product (GDP) and easing inflation.

Which economic interventions did Ruto undertake in 2023?

He noted that the country ranked 29th as the fastest-growing economy in the world after drastic measures aimed at reducing borrowing and increasing tax revenue.

"We take pride in the strides we've made as a nation. We have triumphed over the threat of economic stagnation and are now in secure space with regard to our sovereign debt obligations.

"Inflation has reduced to 6.8% and our GDP is growing at the rate of 5.4%. 2023 is the year we decided to stop wastage and extravagance, instead opting to live within our means," said Ruto.

The head of state highlighted some of the interventions, including cutting expenditure by up to KSh 400 billion and enhancing tax revenue by KSh 600 billion.

Was fertiliser subsidy useful?

The government focused on subsidising production rather than consumption through incentives for crops, livestock, and fisheries programmes.

"These measures were meant to safeguard our sovereignty and independence. We certainly cannot be independent if we are enslaved by monumental debt, as has been the case.

"With the blessing of good weather, these interventions have enabled us to increase our food production by 40%, at a fraction of the previous cost," he said.

Ruto said the interventions will be doubled in 2024 to reduce the country's KSh 500 billion food import bill to zero.

How Kenya's economy rebounded in 2023

Kenya's economy rebounded in the third quarter of 2023 as agricultural activities regained momentum due to favourable weather conditions.

Kenya National Bureau of Statistics (KNBS) report showed that real Gross Domestic Product (GDP) grew from 4.3% in 2022 to 5.9% in 2023.

Inflation eased during the same period under review as prices of agricultural goods reduced.