State of the Nation Address: President Says Kenya’s Economy on Steady Recovery

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.