National Treasury and Economic Planning Cabinet Secretary John Mbadi has affirmed that Kenya's economy has demonstrated remarkable resilience despite facing both domestic and external shocks, a performance attributed to sound and deliberate government policies and the country's diversified economic structure.
Speaking during a press briefing at the National Treasury Buildings, the CS noted the reduction of the gross public debt to Gross Domestic Product (GDP) ratio from 71.9 per cent in June 2022 to 66.7 per cent in June 2024 has been achieved through a combination of tax policy adjustments, spending cuts, and stimulating economic activity in various sectors. "The Present Value of the debt to GDP ratio dropped from 68.7 per cent in 2023 to 63.0 per cent in 2024, thanks to exchange rate appreciation and fiscal consolidation efforts," said the CS.
Mbadi noted that macroeconomic indicators continue to highlight the economy's resilience, especially in the external sector and foreign exchange stability.
Mbadi added that the Central Bank of Kenya (CBK) has eased monetary policy in response to inflation trends. "The Central Bank Rate (CBR) was reduced from 13 per cent in August 2024 to 11.25 per cent in December 2024 and further to 10.75 per cent in February 2025," he stated, adding that the Cash Reserve Ratio (CRR) was lowered by 100 basis points to 3.25 per cent in February 2025 to boost credit growth in the private sector.
