As President William Ruto embarks on his third year in office, he faces an economic landscape filled with both progress and pressing challenges. His administration has championed the “Hustlernomics” agenda, seeking to uplift ordinary Kenyans and improve their economic well-being.
Yet, the realities of governance have tested his leadership, with public expectations remaining high.
Ruto’s tenure has seen significant economic shifts. The Kenya National Bureau of Statistics (KNBS) reports a notable drop in the prices of essential commodities, including a 26.1% decrease in kerosene prices, a 25% reduction in unga costs, and a decrease in electricity and fuel prices.
However, the cost of other household essentials, such as cooking oil and rent, has risen, reminding Kenyans of the hurdles that still lie ahead.
A recent report from the Kenya Institute of Public Policy Research and Analysis (KIPPRA) showed that Kenya’s economy grew by 4.6% in the second quarter of 2024, driven by strong performance in agriculture, real estate, and finance.
However, mining, quarrying, and construction sectors faced challenges, partly impacted by global economic headwinds.
In a recent interview with Global Finance Magazine, Central Bank Governor Kamau Thugge highlighted Kenya’s resilience: “The Kenyan economy registered strong growth of 5.6% in 2023, with agriculture and services sectors rebounding after droughts in previous years.”
Kenya’s fiscal policy has also made strides, with fuel price reductions easing transportation costs for businesses and consumers.
A key initiative, the government’s fertiliser subsidy, aims to boost agricultural productivity and stabilise food prices, crucial for Kenya’s large agricultural sector.
The Kenyan shilling has recently strengthened against the dollar, moving from a historic low of Sh158 to around Sh129, providing relief to importers.
The administration’s efforts to stabilise the debt-to-GDP ratio have been notable. Through fiscal reforms and improved revenue collection, Kenya’s debt has been kept at 67% of GDP, a manageable figure compared to recent years.
Despite these achievements, some of the administration’s policies, like the Housing Levy and increased taxation, have sparked public protests. These events underscore the challenges President Ruto faces as he continues balancing economic growth with the well-being of everyday Kenyans.