The Cabinet Secretary (CS) for the National Treasury and Economic Planning John Mbadi has joined President William Ruto and other government officials for the launch of the Zidi product at the Nairobi Securities Exchange reaffirming the government’s commitment to reforms and strong corporate governance.
Addressing the participants, CS Mbadi noted that the Zidi product marks an evolutionary journey in Kenya’s capital markets, describing them as critical connectors in addressing key economic challenges, from mobilising investment for growth to enabling more citizens to share in economic prosperity, which he termed as ‘democratising wealth’.
He reaffirmed that the National Treasury continues to roll out policies aimed at building robust, efficient, and inclusive capital markets that could serve as engines of economic growth and broad-based prosperity.
Further, the CS observed that expanding the pool of investors increases the availability of capital while ensuring more Kenyans benefitted from returns generated through productive investment.
Additionally, he commended the Capital Markets Authority for its leadership in developing regulatory frameworks and supporting market led innovations that make it easier for individuals to access attractive investment opportunities.
Mbadi at the same time expressed optimism about ongoing reforms, including the establishment of the Infrastructure Fund, noting that investment funds remained a cornerstone for widening investor participation and responding to the evolving needs of both investors and users of capital.
“I welcome the Zidi product developed by Safaricom in collaboration with the Nairobi Stock Exchange. It demonstrates how partnership between government, regulators, and the private sector can unlock long term savings and investment,” he stated.
On the other hand, the CS emphasised that markets worked best when they served both savers and capital users, describing effective markets as a win-win for the economy.
He further stressed the importance of digitalisation and emerging technologies, including AI, in improving market efficiency, assuring that the National Treasury would continue championing open engagement between regulators and industry so that regulation evolves alongside innovation and economic change.
Notably, Mbadi observed that the Zidi product would be a game-changer with the potential to revolutionise Kenya’s capital markets.
He linked the initiative to the Bottom-Up Economic Transformation Agenda (BETA) insisting that it would help bring more Kenyans, especially those previously excluded, into the heart of the economy and advance the broader goal of economic freedom.
The CS further pointed out that economic performance is reflected in numbers, and the numbers clearly showed improvement of the country’s economy.
“Increased participation in capital markets, including share purchases, is a strong indicator of growing confidence in the economy,” he argued.
Mbadi recalled that when the current administration took office in 2022, the USD 2 billion Eurobond maturing in June 2024 had no repayment plan in place. He said the Government successfully managed the obligation, de-risked the economy, and restored stability under President Ruto’s leadership.
The CS added that Kenya’s improved macroeconomic management has been recognised by international credit rating agencies, including Moody’s, further reinforcing investor confidence.
Comparing 2022 to 2026, he highlighted that the difference is evident in fiscal stability, debt management, and market sentiment.
On tax reforms, CS Mbadi explained that proposals such as zero PAYE for workers earning below Sh30,000 are deliberate measures to uplift low-income earners, improve household welfare, and ensure economic growth is felt at the bottom of the pyramid.
By Michael Omondi
