NAIVASHA, Kenya, Feb 21 — The Government’s prudent management of the economy has positioned the country for growth, President William Ruto has said.
The President said the enforcement of fiscal discipline and implementation of prudent debt management has pulled Kenya away from the brink of debt distress.
He said the country’s finances are in good shape, providing the necessary conditions for the successful implementation of the Bottom-Up Economic Transformation Agenda.
“Our economy is on a trajectory that will create more jobs and more wealth, finance investment in public goods and services, and usher this nation into an era of inclusive growth,” he said.
The President made the remarks on Wednesday at a press briefing during the Second National Executive Retreat in Naivasha, Nakuru County.
President Ruto said the government has been ably managing debt liabilities, maintaining a low cost of debt, and ensuring that debt is sustainable at all times.
Taming debt accumulation
The President said the government’s turnaround strategy focused on increasing tax revenues and reducing expenditure and debt accumulation.
“Upon assuming office, we committed to bring our economy back on track by taking necessary measures, making necessary choices and outrightly going all out to raise revenues, reduce expenditure and ensure that we live within our means,” he said.
He said Kenya has successfully settled the buy-back of part of the $2 billion 2014 Eurobond that was to mature on June 24, 2024, by paying $1.5 billion raised last week.
He explained that this has enhanced investor confidence in the country, resulting in the
appreciation of the shilling against the US dollar from Sh162 to Sh142.
“In turn, this has reduced our overall debt by KSh722 billion, and our debt service costs by Sh195 billion over the next 6 years. This has saved the country a total of Sh917 billion,” he said.
Additional indicators of rising investor confidence, he noted, include the performance of the recent issue of the Eurobond, the Infrastructure Bond and increased liquidity in the market.
