President Ruto: Kenya is no longer at risk of debt default
National
By
David Njaaga
| Feb 21, 2024
President William Ruto has praised the government's efforts to improve Kenya's economic situation by reducing debt and increasing revenue.
He attributed the recent appreciation of the shilling to the enhanced investor confidence in the country.
"We have pursued a turnaround strategy focused on increasing tax revenue and reducing both spending and the debt accumulation. Our sacrifices and determined efforts have not been in vain," he said.
He was speaking on Wednesday, February 21, at Lake Naivasha Resort, where he met the Cabinet and Members of Parliament and Senate.
The meeting was convened to take stock of the government's performance and progress.
Ruto said the fiscal and general economic management policies and the tightening of the monetary policy by the Central Bank of Kenya had resulted in the appreciation of the
Kenya shilling against the US dollar from an average of Sh162 to an average of Sh142.
"In turn, this has reduced our overall debt by Sh722 billion and also reduced our debt service costs by Sh195 billion over the next six years, saving the country almost a trillion," he added.
He added the successful turnaround had pulled Kenya away from debt distress, put the finances in good working order and established the necessary conditions to execute the Bottom-up economic agenda.
The Head of State exuded confidence that the economy was on a trajectory that would create more jobs, wealth and finance investments.
"Where we stand today as a nation, especially after the anxiety of the last one year, where many in the international community were worried about Kenya's position and its financial ability to manage our situation, including our debt situation, I can now confidently say Kenya is no longer in the list of the countries that run the risk of debt default," he noted.
"Our collective efforts that have been made by the Treasury and the whole of government approach that has seen us cut down on many aspects of spending to make sure that we reduce the accumulation of expensive debt and put the country on a trajectory of living within our means."