President William Ruto has announced that Kenya’s inflation rate has hit its lowest point in 17 years, falling from 9.6% in September 2022 to 2.7% in October 2024.
In his State of the Nation address on Tuesday, the president credited this significant drop to a combination of favourable weather conditions and the government’s targeted efforts to support farmers.
These efforts, which included the provision of affordable agricultural inputs such as subsidized fertilizers, have boosted both production and productivity, helping to lower the prices of key staples like maize, beans, and peas.
“All macro-economic indicators are showing a positive shift, and we are on an upward trajectory,” President Ruto said during the address.
“The shilling has strengthened significantly, appreciating from KSh162 to the dollar in February 2024 to Ksh129 today—an impressive gain of 20%. This recovery has not only restored confidence in our financial markets but has also reduced the cost of servicing external debt, creating much-needed fiscal space for national development.”
The president also highlighted the growth of Kenya’s foreign exchange reserves, which have increased by $2.4 billion to a record $9.5 billion. This is enough to cover 4.8 months of imports, the highest level in a decade.
“This strengthened reserve position shields us from external shocks and boosts investor confidence,” he remarked. “Additionally, interest rates are falling, which lowers borrowing costs and provides more room for businesses to invest in growth.”
In terms of fiscal performance, Ruto pointed out that tax revenues had risen by 11.5% in the year leading up to June 2024, reflecting the success of efforts to expand the tax base.
He also noted that Kenya’s economy continues to grow at a steady pace, with a 5.6% growth rate in 2023—one of the highest globally.
Looking ahead, President Ruto projected that the economy would grow by 5% in 2024, with a further 5.6% growth expected in 2025.
Farmers recorded bumper harvests.
