The Kenya National Bureau of Statistics released two
sets of documents that paint a stark reality of the Kenyan economy.
It calls upon the leadership to sober up and stop wishing away real fundamental challenges that affect the economy and the welfare of Kenyans. Political pronouncements cannot replace real output.
The summary is as follows: First, the economy grew by 4.6 per cent in 2025. This is lower than in 2024 and lower than earlier projected. This is despite the year enjoying the best natural, national, and global conditions: fairly calm internal political stability and low oil prices averaging below $70 per barrel.
Second, the comparison of the first three years of the previous three governments since 2002 shows our economy has not performed as Kenyans would wish or have been made to believe.
And third, the economy was also the worst-performing in the region, which calls for a total policy shift to reclaim the progress made in the past.
What must Kenya do to reverse this deteriorating situation?
One, decouple enterprise from patronage. The current model of patron-client capitalism is choking the economy and suffocating real entrepreneurship.
Two, there must be a real focus on growing productivity. Manufacturing should be the natural pivot. This is to create a complex economy with spillovers across sectors. Sustainable growth in exports should be derived from value addition and higher technology manufacturing.
Three, the financial sector has the potential to expand beyond Kenya. Kenyan banks should be supported to dominate the region and the continent.
Four, the country must deliberately slow down on borrowing. We are in debt distress by all definitions, and the profligate borrowing is placing Kenya on a cliff.
Five, to avert a further rise in inflation, the government must further subsidise fuel through the Fuel Stabilisation Fund, which has more than Sh17 billion, and this should be activated to keep fuel prices low.
Lastly, the leaders must make data-driven decisions, allocating more time to thoughtful management of the economy as opposed to perpetual politics.
This is an abridged version Kiharu MP Ndindi Nyoro’s statement on the Economic Survey 2026
Comments 0
Sign in to join the conversation
Sign In Create AccountNo comments yet. Be the first to share your thoughts!