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Ruto: We've triumphed over threat of economic stagnation despite a difficult 2023

President William Ruto during his address to the nation from State Lodge Nakuru on December 31, 2023. (Photo: PCS)

By Dennis Tarus | Monday, January 1, 2024

President says Kenya is now in a secure space with regard to the nation's sovereign debt obligations.

President William Ruto has hailed the country's economic transformation amid turbulent times in his New Year message to Kenyans.

Ruto speaking on New Year's Eve from State Lodge Nakuru highlighted the government's key achievements while admitting that his administration's tough choices were "painful but necessary" for long-term economic prosperity.

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"In 2023, like most of us, our country has lived through an eventful year and made encouraging progress across

many sectors, amid daunting setbacks. The impact of global economic dynamics adversely affected us, compounded by the war in Europe, rising interest rates in America and the unfortunate effects

of climate change that occasioned the most severe drought in 40 years," Ruto said on Sunday.

"All these factors slowed down our economic performance, resulting in increased commodity prices. Fertilisers and cereals experienced significant price hikes, contributing to the rise in food prices and the overall cost of living."

Paradigm shift

The Head of State said to manage, moderate and overcome these difficulties, his administration had

to undertake a complete paradigm shift in handling the country's issues.

"We collectively summoned the courage to make bold, decisive, far-reaching and long-term decisions to once and for all put our country on the path to attaining its full socioeconomic potential," he said.

"The choices we've made over the last year were neither easy, populist, nor convenient...they were however meaningful, appropriate and necessary. In the short-term painful, but in the long-term gainful."

The President said Kenya triumphed over the threat of economic stagnation and is now in a secure space concerning the nation's sovereign debt obligations.

He cited the reduction of inflation down to 6.8 per cent and the country's GDP growth rate of 5.4 per cent, which he said placed Kenya as the 29th fastest-growing economy globally.

"Our collective efforts have not only rescued us from economic paralysis but propelled us towards a brighter future. We navigated complex debt situations, accelerated economic progress, and invested significantly in our human capital," Ruto said.