President William Ruto has projected a stronger economic rebound for Kenya in 2026, forecasting GDP growth of between 5% and 5.8%.
Delivering his annual State of the Nation Address to Parliament, the President said the country had “turned a decisive corner” following a period of economic volatility, supported by stable inflation, improved investor sentiment and a strengthened shilling.
The President said reform measures implemented over the past two years had restored market confidence and spurred new investment commitments, reversing the negative perceptions that had weighed down the economy. He noted that Kenya’s economy is now valued at USD 136 billion, making it the sixth-largest in Africa.
A major highlight of the address was the resurgence of activity at the Nairobi Securities Exchange (NSE), which the President termed one of the best-performing emerging markets globally after years of subdued activity linked to global risk aversion and domestic uncertainties.
Job creation featured prominently in the President’s speech. He said the Affordable Housing Programme has so far generated more than 428,000 jobs, with projections showing the number could rise to 1 million next year.
The head of state added that financial reforms have expanded credit access to over 3 million Kenyans now borrowing through the Hustler Fund, boosting small enterprises and household resilience.
He also highlighted gains in youth empowerment, noting that 300,000 young people are currently earning through the Ajira and Jitume digital work programs. The NYOTA Project, he said, is expected to support an additional 820,000 young Kenyans over the next five years
