logo
ADVERTISEMENT

ELIUD OWALO: President William Ruto's mid-term scorecard

The government dedicated the first two and a half years to establishing a strong macroeconomic foundation.

image
by ELIUD OWALO

News12 March 2025 - 04:16
ADVERTISEMENT

In Summary


  • By analysing key achievements and socio-economic trends, this review ensures strategies remain on course to deliver tangible benefits to citizens.
  • A stable economy attracts investments and reduces the cost of living.
Eliud Owalo, Deputy Chief of Staff, Performance and Delivery Management in the Executive Office of the President.

The Bottom Up Economic Transformation Agenda 2022-27, known as ‘The Plan,’ serves as a definitive five-year contract between the Kenya Kwanza Administration and the people of Kenya.

The priorities were selected through a consultative process, focusing on five key targets: reducing the cost of living, eradicating hunger, creating jobs, expanding the tax revenue base and improving the foreign exchange balance.

These priorities were designed to promote inclusive growth and uplift those at the bottom of the income pyramid. The core pillars of the plan include agriculture, micro, small and medium enterprises (MSMEs), housing, healthcare and the digital superhighway.

As of March 12, 2025, the Kenya Kwanza Administration is at the midpoint of its term. This mid-term review assesses progress, challenges and the effectiveness of policies implemented.

By analysing key achievements and socio-economic trends, this review ensures strategies remain on course to deliver tangible benefits to citizens.

The first half of the administration’s term can be summarised into five thematic areas: fostering macroeconomic stability, interventions in key value chains, job creation, social welfare and infrastructure expansion.

Economic stability and reducing the cost of living

The government dedicated the first two and a half years to establishing a strong macroeconomic foundation. A stable economy attracts investments and reduces the cost of living.

A major intervention was the reduction of fuel costs, which signi cantly stabilised production and transportation expenses.

Through strategic policy changes, demurrage costs were cut by 77 per cent, dropping from $2,227,411.70 to $496,382.53.

Foreign exchange stability has been another success. In January 2024, the exchange rate was Sh160.8 per USD, but by March 2025, it stabilised at Sh129.19.

This alleviated the cost burden on imported goods and strengthened Kenya’s economic standing. The cost of living index improved as inflation dropped from 9.2 per cent in September 2022 to 3.5 per cent in February 2025, attributed to fiscal discipline and targeted subsidies.

Electricity costs, a key driver of economic performance, were also addressed. Power generation increased from 3,076MW to 3,243MW, with household connections rising from 8.9 million to 9.85 million.

Interest rates have been lowered to support investments, with the Central Bank Rate decreasing from 11.25 per cent in December 2024 to 10.75 per cent in February 2025.

The government also managed debt effectively, reducing the fiscal deficit from 6.2 per cent to 5.2 per cent of GDP, which improved Kenya’s credit rating from Moody’s.

Trade performance improved, with exports to the East African Community rising from Sh226.4 billion in 2022 to Sh305.8 billion in 2025.

Kenya secured permanent tariff-free access to the EU in July 2024, and a Kenya-UAE trade agreement in January 2025 opened new opportunities for agricultural exports.

Agriculture, contributing 50 per cent of GDP and sustaining two-thirds of the population, has seen significant investment.

A key intervention was the fertiliser subsidy programme, which reduced prices by 67 per cent. As a result, maize production increased by 39 per cent, with yields rising to 85.7 million bags.

The price of a 2kg packet of maize flour dropped from approximately Sh230 in 2022 to Sh140 in 2025, easing household food expenses.

The livestock and dairy sectors recorded growth, with milk production increasing by 13 per cent and dairy exports rising by 92 per cent.

Job creation initiatives

Job creation remained a top priority, with the government implementing targeted programmes across various sectors.

The digital economy, labour migration and affordable housing projects have been key drivers of employment expansion. The number of online workers under the Ajira and Jitume programmes surged from 41,382 in 2022 to 182,568 in 2025, marking a 323 per cent increase.

Skilled labour migration grew by 1,279 per cent, facilitated by new bilateral agreements with various countries. The housing sector created an additional 188,256 jobs through affordable housing projects, with 130,988 housing units under construction.

Infrastructure development

Infrastructure is crucial for economic growth and social transformation. Significant investments were made in roads, water, energy, ICT and housing, improving access to essential services.

A major milestone was the completion of the Northern Collector Tunnel, which increased Nairobi’s water storage capacity by 100 million cubic metres annually.

Between 2022 and 2025, 6,000 kilometres of roads were constructed, improving rural and urban mobility. Air transport also improved, with 14 airstrips rehabilitated.

The government expanded ICT infrastructure, installing an additional 4,690km of fibre optic cabling and establishing 282 digital hubs.

Electricity access increased, connecting over 5.8 million new households and boosting market accessibility across the country.

Progress in social welfare

The government made substantial progress in social welfare initiatives.

The Inua Jamii programme expanded financial support for older persons by 66 per cent, benefiting more than 1.2 million individuals.

Support for orphans and vulnerable children grew by 65 per cent, while assistance for persons with disabilities increased by 34 per cent.

Women’s empowerment initiatives saw a boost, with loan disbursements under the Women Enterprise Fund rising by 92 per cent.

The government also increased the number of bene ciaries receiving cash transfers through the Hunger Safety Net Programme.

Healthcare reforms

One of the most significant healthcare interventions was the transition from the National Hospital Insurance Fund (NHIF) to the State Health Insurance Fund (SHIF).

This change aimed to address NHIF’s inefficiencies and expand healthcare access under Universal Health Coverage (UHC).

The SHIF has seen membership grow from eight million enrollees in 2022 to 19.7 million in 2025.

A new Integrated Health Information Management System (IHIMS) has enhanced data-driven decision-making, while the Community Health Promoters programme increased the number of trained health workers.

Education sector improvements In education, 76,000 teachers were recruited to improve the teacher student ratio, and the construction of 16,000 new classrooms supported the Competency-Based Curriculum transition.

The school feeding programme expanded, benefiting 2.6 million students. Technical and Vocational Education and Training enrolment grew by 42 per cent, enhancing the availability of technical skills.

Funding for higher education increased, with many students receiving scholarships and loans. Under President William Ruto’s leadership, the Kenya Kwanza Administration has made remarkable strides in strengthening economic stability, expanding infrastructure, improving food security and enhancing social welfare.

While challenges remain, the achievements thus far lay a strong foundation for sustainable development and improved livelihoods for all Kenyans.

The writer is the Deputy Chief of Staff, Performance and Delivery Management in the Executive Office of the President.

Related Articles


logo© The Star 2024. All rights reserved