President William Ruto chaired a Cabinet meeting on Thursday, where the government was briefed on Kenya’s improved macroeconomic situation, thanks to fiscal management measures over the past two years. The country’s economy is bouncing back, showing robust growth despite previous global and domestic challenges.
Inflation, which had been a concern, has dropped significantly to 2.7% last month, down from 9.6% in September 2022. This is the lowest inflation rate since 2007, and it aligns with the targets set in the Kenya Kwanza Manifesto. As a result, food prices, including maize, beans, and peas, have decreased, easing the cost of living for many Kenyans.
The Cabinet also learned that foreign exchange reserves are at a historic high of $9.5 billion, an increase of $2.4 billion, providing over four months of import cover. Additionally, Kenya’s economy is growing steadily, with an expected growth rate of 5% this year and 5.6% in 2024. The shilling has also stabilized, appreciating by nearly 20%, leading to reduced external debt service.
On the revenue front, Kenya Revenue Authority (KRA) reported a double-digit growth in tax collections, increasing by 11.5% for the year leading up to June 2024. The country’s food situation is also stable, thanks to government subsidies for fertilizers and support for farmers. Kenya has enough food reserves, including maize, beans, and rice, to meet demand.
The Cabinet was also briefed on labor migration, revealing that over 105,000 Kenyans have secured jobs abroad since July 2023. Additionally, the government has signed labor agreements with countries like Germany and Austria. In education, five Technical Training Institutes have been approved for upgrading to National Polytechnics, expanding opportunities for vocational training across the country.
