National Treasury Principal Secretary Dr. Chris Kiptoo has assured Kenyans that the country’s economy remains stable, saying the government has made significant progress in restoring macroeconomic stability despite global economic shocks experienced over the past few years.
Speaking in Gichugu, Kirinyaga County, Dr. Kiptoo said the economy had faced major external challenges from 2022, including the effects of the COVID-19 pandemic and the Russia-Ukraine war, which triggered high inflation, depreciation of the Kenya shilling and increased pressure on public debt management.
“The external factors manifested in a very big way. Domestic prices went up, inflation rose to almost 9.6 per cent, the shilling came under a lot of pressure and we experienced challenges in managing our debt,” Dr. Kiptoo said.
He noted that through deliberate government interventions over the last three years, the economy has steadily recovered. “In the last three years or so, we have worked very hard to stabilize the economy. Inflation has come as low as almost 2.7percent, but still went back to around 4.4 percent. We have stabilized the shilling, as you are aware,” the PS added.
Kiptoo also encouraged Kenyans to invest in the Nairobi Securities Exchange, noting that investors who entered the stock market in recent years have more than doubled their investments due to improved market performance.
“Macroeconomic stability has been achieved, and the stock market has performed exceptionally well. Those who invested have seen significant returns,” he said.
Despite the gains, Dr. Kiptoo acknowledged that the government continues to face fiscal challenges, particularly in balancing revenue collection with rising public expenditure.
“Everybody wants money, yet revenues are not growing as fast as our spending needs. This forces us to finance budget deficits. However, we remain committed to fiscal consolidation because it is in the country’s best interest to reduce debt and sustain economic stability,” he said.
On the ongoing crisis in the Middle East, Dr. Kiptoo said Kenya has so far been shielded from severe economic impacts due to the resilience built over the past three years.
“We have put in place measures to ensure the country continues to have adequate energy supplies despite the prevailing global uncertainties,” he added.
PS Kiptoo also used the platform to appeal to Kenyans to remain united, saying national cohesion is essential for development.
“We have a great country, and we have no other country but Kenya. Every time we face challenges, we overcome them because we are resilient. Let us continue promoting unity, love one another and work together for the good of our nation,” he said.
His sentiments were echoed by Principal Secretary for the State Department for Forestry, Gitonga Mugambi, who urged Kenyans to uphold peace and patriotism.
“We have a duty to love our country and take care of one another. Whatever our differences, we are one people and we are all Kenyans. We must ensure Kenya remains a country that we all cherish,” Mugambi said.
The leaders were attending the burial of Josphat Simon Karinga Njagi the father of Dr. Jane Wangu Njuguna, Chief Executive Officer of the Kenya Forestry Research Institute (KEFRI).
By Mutai Kipng’etich
