Mbadi defends Ruto's economic record, says life cheaper than 2022

National Treasury Cabinet Secretary John Mbadi addresses participants during 2025/2026 Deloitte Kenya National Budget Analysis, on June 13, 2025.[ Wilberforce Okwiri, Standard] National Treasury Cabinet Secretary John Mbadi has defended President William Ruto's administration, outlining how government economic policies have eased the cost of living in the country. According to Mbadi, life for the ordinary citizen is less expensive today compared to 2022, before the Kenya Kwanza government took office. "In 2022, the inflation rate stood at 9.6 per cent. It has since dropped to 4.1 per cent. To me, that clearly reflects a reduction in the cost of living," he said. He cited the prices of fuel, maize flour, and sugar as indicators, while dismissing critics who argue that "economic policies are not crafted in churches or funeral rallies." The CS noted that the government, fully aware of the debt burden weighing on the economy, also took steps to minimise risks linked to the Eurobond obligation falling due in May 2027. He recalled the 2024 Eurobond crisis, when the bond was maturing in June, leading the shilling to depreciate to Sh165 against the US dollar. The currency has since strengthened to Sh129. "If you want to know this progress is real, look at the forex reserves. Our reserves now stand at 5.2 months of import cover, up from 3.8 months a year ago and just 2.3 months in 2022," said Mbadi. Speaking at the launch of the 2026/2027 and medium-term budget preparation process, Mbadi chastised critics, insisting that economic decisions must be based on pragmatic thinking. He added that inflation has fallen from 9.6 per cent in October 2022 to 4.1 per cent in July 2025. Additionally, Treasury bill rates have been halved from 16 per cent last year, easing liquidity constraints for the private sector. "Those are the economic fundamentals that would help the economy grow. It is not about fights in the streets or in funerals," said Mbadi. "If you want to know that is the reality-early in 2023, we had sufurias on our heads. Today, how many are in the streets with sufurias on their heads? I don't see them." However, Abraham Rugo, Executive Director of Bajeti Hub, who attended the event, questioned these metrics, arguing that real wages-according to the latest Economic Survey by the Kenya National Bureau of Statistics (KNBS)-have declined. "The reason Kenyans are not experiencing a reduction in the cost of living is because of real wages. According to statistics, they are actually going down," said Rugo. The decline in real wages has also been linked to businesses closing due to the high cost of operations, a trend documented by the Federation of Kenya Employers (FKE). "Even if the cost of products has gone down, when real wages are falling, it is almost a zero-sum effect," Rugo argued. Mbadi countered that the Tax Laws (Amendment) Act, 2024, addressed this by making contributions to the Social Health Insurance Fund and Affordable Housing Levy (AHL) tax-deductible, offering relief to many working Kenyans. Data presented at the event showed the price of a kilo of sugar fell from Sh218 in November 2023 to Sh187 in July 2025-although this remains higher than Sh164 a year ago. Similarly, the price of a litre of petrol, which shot above Sh200 when subsidies were scrapped, now stands at Sh185. This represents a drop of Sh1 compared to July prices, though Sh7 higher than in June. In July, petrol retailed at Sh172.75 per litre, compared to Sh204 in November 2023.

Mbadi defends Ruto's economic record, says life cheaper than 2022

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Mbadi defends Ruto's economic record, says life cheaper than 2022

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