President William Ruto Tuesday gave hope to Kenyans by assuring the economy was on a stable footing.
Ruto confirmed that the country which has been reeling under a huge public debt burden is safely out of danger of debt distress.
While addressing Kenyans during the 60th Jamhuri Day celebrations held at Uhuru Gardens in Nairobi, the President attributed the recovery to painful sacrifices made by both Kenyans and his government including cutting down on expenditure.
“Together, we have made the right choices, sometimes taken very difficult and painful decisions, to steer Kenya back from the edge of the catastrophic cliff of debt distress, and move our nation in a new direction,” he said.
The President who pledged to revive the economy when he took over leadership last year, said his administration had to defer the implementation of critical development programmes to rescue the country from an economic catastrophe.
“We have had to cut back significantly on expenditure and defer the implementation of critical development programmes to stabilise our economy. The policy measures required to mobilise necessary revenues have been difficult, but they were our only way and means of escape” adding that the sacrifices had finally paid off.
“We have had to cut back significantly on expenditure and to defer the implementation of critical development programmes to stabilise our economy. The policy measures required to mobilise necessary revenues have been difficult, but they were our only way and means of escape”.
Ruto was proud of bouncing back, the highlight being the significant drop in inflation rate to 6.8pc, from a high of 9.2pc last year.
“The economic indicators point to good news. Inflation is now at 6.8%, down from a high of 9.2% last year. In the last 6 months, our GDP has grown at 5.4%, making Kenya the 29th fastest-growing economy in the world, according to the World Bank. There is no question about it: What we have done together, the price we have paid together and the sacrifices we have made together have rescued our country from an economic catastrophe” he explained.
With the breakthrough, the President in his 17-page speech said the focus has now shifted to accelerating economic progress.
“After navigating our way out of a difficult and complicated debt situation, our second action is to accelerate economic progress, which is the cardinal assignment of our generation” he affirmed.
The government has been spending almost half its revenue on debt-servicing. Ruto last month committed to settle this month, the first installment of the $2 billion Eurobond which matures in June 2024.
