The Deputy Chief of Staff in charge of Performance and Delivery Management, Eliud Owalo, has lauded the ongoing government efforts in revitalizing the country’s economy, citing reduced inflation, stronger revenue collection and improved foreign exchange reserves as key indicators of recovery.
Speaking during the Economists Society of Kenya’s (ESK) annual conference at a Kwale hotel, Owalo says the economy, which was “on its deathbed” in 2022, was now on a firmer footing, following deliberate fiscal and monetary interventions by the Kenya Kwanza regime.
The Deputy Chief of Staff, noted that inflation has dropped significantly from 9.2 per cent in 2022 to 4.5 per cent in 2025, while the shilling has strengthened against the dollar, appreciating from an average of Sh160 to Sh129 during the same period.
“Revenue collection has grown from Sh1.9 trillion in 2022 to Sh2.9 trillion today, while the fiscal deficit has narrowed from 6.2 per cent to 5.8 per cent,” he said.
Owalo further stated that foreign exchange reserves rose from $7.7 billion in 2022 to $10.9 billion by August 2025, while on lending rates, he acknowledged the challenges posed by the tight monetary policy, but said stability has now been restored, with the rates currently standing at 15.24 per cent after spiking to over 20 per cent in the past year.
Addressing public debt concerns, Owalo said Kenya’s debt rose from Sh8.76 trillion in October 2022 to Sh11.81 trillion by June 2025.
However, he emphasised that the debt-to-GDP ratio has slightly improved, falling from 68.7 per cent to 67.8 per cent.
“You cannot look at debt in isolation. What matters is how borrowed funds are used to expand the economy and increase the value of goods and services,” he explained.
Looking ahead, the Deputy Chief of Staff, pledged more efficiency, transparency and accountability in government.
He revealed that an Office of Government Efficiency had been established under his portfolio to streamline processes, enhance service delivery and curb revenue leakages.
“We want to seal loopholes that allow revenue loss and stop public officials from dipping their hands into the public jar,” he said.
Furthermore, Owalo added that only recently, the government carried out a midterm review of its development plan and will introduce targeted interventions to address lagging areas, while consolidating progress made so far.
By Sadik Hassan
