President William Ruto on Tuesday credited a series of difficult policy decisions with preventing Kenya from defaulting on its debt, describing the steps as critical for the country’s economic stability.
He spoke while receiving the Jukwaa la Usalama report from Senate Majority Leader Raphael Tuju’s predecessor, CS Murkomen, at State House.
The President said Kenya faced a period of severe financial strain when foreign reserves had fallen to $5.7 billion, raising concerns about the nation’s ability to meet external obligations.
“Everybody believed Kenya would not be able to pay its debt. I had to make very difficult decisions,” Ruto noted, emphasizing the long-term benefits of these measures.
According to the President, inflation has dropped from 9.6% to 4.6%, while the dollar exchange rate has improved from Ksh.167 to Ksh.129.
He argued that these indicators reflect the impact of government interventions and fiscal discipline in stabilizing the economy.
Ruto recalled convening a small team in Office Number 6 to deliberate on options that would safeguard Kenya from default.
He said the process involved weighing short-term sacrifices against lasting economic gains, signaling the administration’s focus on structural stability over immediate relief.
Kenya has faced growing fiscal pressures in recent years, driven by high debt levels, rising borrowing costs, and external shocks affecting global commodity prices.
The President’s remarks come amid broader discussions about Kenya’s economic strategy and its ranking among Africa’s largest economies.
Ruto added that the decisions made during the period of economic uncertainty were necessary to secure Kenya’s future, framing them as a demonstration of leadership in managing national finances.