Kenya, 20 November 2025 - President William Ruto on Thursday highlighted the progress Kenya has made over the past three years in stabilising the economy and boosting investor confidence.
Delivering his State of the Nation Address during a joint sitting of Parliament, Dr Ruto recalled that in 2022, Kenya faced severe economic challenges.
Inflation had surged to nearly double digits, fuel shortages threatened to paralyse the economy, and the shilling was in free fall.
Foreign reserves had hit historic lows, while debt servicing consumed more than half of government revenue. International analysts warned that Kenya could be on the brink of default.
“In that context, we acted decisively,” Ruto said.
“We restored fiscal discipline, eliminated wasteful subsidies, rationalised public expenditure, and strengthened revenue collection. We put our economy on a path of recovery and sustainability.”
The results, he said, have been tangible. Inflation has dropped from 9.6% in 2022 to 4.6% last month, bringing relief to households. The shilling, once in decline, has stabilised at KSh 129 to the dollar for nearly two years due to prudent monetary policy and fiscal discipline.
Kenya’s successful Eurobond redemption, he noted, also signalled to the world that the country honours its financial obligations.
Kenya’s GDP has grown from $115 billion in 2022 to $136 billion, making the country the sixth-largest economy in Africa, up from eighth place.
Foreign reserves have exceeded $12 billion, the highest in the nation’s history, providing a buffer against external shocks and boosting investor confidence.
International financial institutions have taken notice. Ruto noted that 14 major global banks, including Citigroup, J.P. Morgan, Standard Chartered, and Goldman Sachs, project that Kenya’s economy will expand by 5% to 5.8% in 2026.
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This optimism, he said, is grounded in strong fundamentals: lower credit costs, rising exports, increased household spending, and a broadly stable macroeconomic environment.
Standard & Poor’s has upgraded Kenya’s sovereign credit rating from “B-” to “B,” the first upward revision in years.
“This upgrade lowers our risk profile, attracts more investment, and reduces borrowing costs for both government and the private sector,” Ruto said.
The President also highlighted significant growth in foreign direct investment (FDI), which has more than tripled from $463 million (KSh 60 billion) in 2021 to $1.5 billion (KSh 195 billion) in 2024.
Over 300,000 new businesses, including 500 foreign companies, have registered in Kenya over the past three years, reflecting renewed confidence and improved ease of doing business.
The Nairobi Securities Exchange (NSE) has also seen a resurgence, with investor wealth growing by over KSh 1 trillion since January, marking one of the strongest performances in over a decade. The NSE’s revival underscores investor trust in Kenya’s economic direction and reforms.
Reflecting on the nation’s journey, Ruto said: “Sixty-two years shaped by struggle, sacrifice, hardship, and triumph affirm our national spirit. While we have made commendable progress, Kenya still punches below its true weight. This nation has the talent, resources, and spirit not just to improve, but to leap, to transition from a developing to a developed country within our lifetime.”
He concluded by acknowledging the challenges of the past three years.
“We have agreed, sometimes disagreed, confronted hard truths, and endured storms none of us invited. But the foundation we have laid is solid, and the vision ahead is both realistic and achievable.”

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