Ruto defends record on economy, accuses State critics of telling lies

President Ruto with Chief of the Defence Forces (CDF) General Charles Kahariri during Jamuhuri Day Celebrations on December 12, 2024 at Uhuru Gardens. [Kanyiri Wahito, Standard]

President William Ruto yesterday told off his critics as he fiercely defended his government, noting the economy has become better over the last two years under his Kenya Kwanza administration.

The President, who has faced stinging criticism over the path he has put Kenya on, said the economy had significantly improved. 

He told his critics to base their arguments on facts when criticising the government. The President has also had to endure accusations of lying to Kenyans by different stakeholders including the clergy and civil society.

“When we say the cost of basic food commodities has come down, it is a fact. When we say inflation has gone down, it is a fact. When we say our farmers are producing more and better, it is a fact, and when we say Kenyans who have registered for Taifa Care are receiving better services than before, it is a fact,” said Ruto, during this year’s Jamhuri Day celebrations at the iconic Uhuru Gardens.

He added: “We encourage everyone, including our critics, to engage on the basis of facts and the truth. If some of us persist in the culture of reckless negativity, for how long will cynics mobilise Kenyans to deny facts that they can touch, feel and see? What will they say in a few weeks’ time when we begin to give keys to the new owners of affordable housing units?”

Inflation, which is a measure of increase in cost of goods and services, increased marginally to 2.8 per cent in November from 2.7 in October, according to the Kenya National Bureau of statistics. The inflation rate has consistently dropped from a high of 9.6 per cent in October 2022.

While it has been on the decline on account of factors such as the drop in food prices owing to favourable weather and lower oil prices, most ordinary Kenyans are still unable to afford essential goods due to, among others, poor economic performance and high taxes, which have reduced their disposable income.

A recent survey by research firm Infotrack shows about three quarters of Kenyans are either in severe financial distress or struggling to make ends meet.

Ruto however noted that while things have been bad, they are getting better, something that critics must accept. “In the face of undeniable evidence, scepticism must give way to confidence, and we must reject the deceptive embrace of disinformation and fake news. The results and positive impact of our collective pursuit of fundamental economic change can no longer be wished away,” he said.

He cited bumper harvests reported by farmers, partly attributed to favourable weather as well as measures that the Kenya Kwanza administration has put in place including subsidising fertiliser and reviving agricultural extension services. This, he said, has increased land under cultivation.

“Not only have we registered successive historic gains against the shame of hunger for three seasons, but we are also firmly on the path towards surplus production. This impressive rise in productivity has multiplied the incomes of farmers in the maize, tea, sugar, coffee and dairy value chains,” said Ruto.

He said the country now boasts substantial national food stocks including 95 million 50kg bags of maize, nine million bags of beans, 10 million bags of wheat, and two million bags of rice. “Step by step, we are building a food-secure Kenya where every family can afford and access a meal,” he said.

He also announced a revamp of the Hustler Fund, one of his pet projects. The fund, also referred to as the Financial Inclusion Fund, lends to Kenyans – both businesses and individuals – micro loans at low interest rates.

School children flying the Kenyan flag in jubilation during Jamuhuri Day Celebrations on December 12, 2024 at Uhuru Gardens. [Kanyiri Wahito Standard]

Ruto said it will have a new component referred to as Bridge Loan that will increase loan limits for borrowers with good credit scores as well as increase the loan repayment period. Low amounts disbursed as well as short repayment periods have been among the concerns for many borrowers.

“Financial inclusion is now a reality for millions of Kenyans,” he said, referring to the impact that the Hustler Fund has had in advancing credit to Kenyans who may not have had access to financial services due to lack of credit history or collateral to secure loans.

The President said there has been progress on the construction of affordable houses, another of his pet project. “Since September this year, 1,200 affordable housing units have been completed. Additionally, the State Department of Housing has advertised 4,888 units available for sale to the public through the Boma Yangu platform,” he said.

He added: “Our goal to increase the number of mortgages from 30,000 to one million has now shifted gears. Our delivery pipeline for affordable housing now has 124,000 units at various stages of development across Kenya, while 840,000 planned projects over the next four years are projected to create one million jobs.”

The government, the President said, is also pushing its agenda of having more Kenyans secure jobs abroad in a bid to tackle unemployment in an economy that is not creating jobs fast enough for its young people.