Ruto: Economic sacrifices of 2022 now bearing fruit

President William Ruto has defended the tough economic measures his administration introduced upon taking office in 2022, saying the sacrifices made are now beginning to yield tangible results.

Speaking during an official visit to Italy, the President said the reforms, though painful at the time, were necessary to stabilise the economy and restore investor confidence.

“Today, you can see the difference the sacrifices we made then,” Ruto said. “Our inflation was at nine per cent; it is now four per cent. Our exchange rate had gone all the way to Sh160 for a US dollar; it is now Sh129.”

He added that the economy has now reached a more stable footing, allowing the government to focus on long-term development priorities.

“Our economy is now fairly stable; we can now count on it, we continue to do what we must do,” he said. “I can say with confidence that the sacrifices we made in 2022 are giving us results.”

Some of the key measures introduced during the period included the removal of fuel and maize flour subsidies. The government also introduced a 1.5 per cent mandatory housing levy, doubled VAT on fuel to 16 per cent, and increased taxes on digital content and services.

In addition, it implemented budget cuts on public spending as part of efforts to manage high debt servicing costs and avoid defaulting on international loans.

The President acknowledged ongoing global economic pressures, particularly disruptions in fuel markets caused by geopolitical tensions in the Middle East, but expressed confidence in the government’s ability to manage the situation.

“I know the fuel crisis occasioned by war in the Middle East has caused disruption, but we will manage it so that it does not significantly affect our economy,” he said.

Ruto further noted that Kenya’s fiscal credibility had improved significantly, pointing to a shift in international perception of the country’s economic outlook.

“Today, we have gained respect. Credit rating agencies that had put Kenya in a very difficult position are now giving a different story. In fact, they are elevating our credit rating,” he said.

“Having a stable economy was my first assignment. Without a stable economy, it is difficult to do anything else.”

The remarks came as Kenya and Italy deepened bilateral relations through the adoption of a comprehensive Action Plan for the period 2026–2029 under the Mattei Plan for Africa.

The agreement was concluded during bilateral talks between President Ruto and Italian Prime Minister Giorgia Meloni in Rome. Kenya has been identified as a key partner in the Mattei Plan, a flagship initiative launched in 2024 aimed at promoting equal partnerships with African nations, enhancing development cooperation, addressing migration challenges, and strengthening energy security.

According to a statement from the State House, the Action Plan will guide Kenya–Italy cooperation over the next three years, with its implementation subject to regular review through established bilateral mechanisms.

The leaders also pledged to explore new areas of cooperation under their Strategic Partnership, with a strong focus on expanding economic opportunities through increased private sector engagement.