SOTNA: Ruto affirms economic turnaround, touts shilling stability

President William Ruto makes his State of the Nation address at Parliament, Nairobi. November 20, 2025. [Elvis Ogina, Standard]

President William Ruto says Kenya's economy has recovered from the brink of crisis in 2022 to stability through strategic fiscal reforms.

Speaking at Parliament during his third State of the Nation Address on Thursday, November 20, Ruto said growth has moderated to 4.6 per cent in 2025 from 9.6 per cent in 2022. Foreign reserves have surpassed 12 billion dollars, and the Kenyan shilling has held at 129 per dollar for nearly two years.

"Last three years have not been easy. We have agreed and sometimes disagreed, compromised and endured storms," Ruto said, adding, “We all take comfort that it has not been for nothing."

In 2022, Kenya faced severe economic challenges. Inflation neared double digits, the shilling tumbled, and foreign reserves hit historic lows as debt service consumed more than half of government revenues.

Ruto said his administration restored fiscal discipline by eliminating wastage and strengthening revenue collection. Inflation has steadily declined, the shilling has recovered, and Kenya has met eurobond redemptions.

"Within that context we eliminated wastage and restored fiscal discipline," Ruto noted, crediting the turnaround to reforms under the Bottom-Up Economic Transformation Agenda. He said moderation in growth from 9.6 per cent to 4.6 per cent reflects the impact of fiscal tightening, though the rate remains respectable for an East African economy emerging from crisis.