• These sectors were strategically chosen to address deep-rooted economic marginalisation and uplift those at the base of the economic pyramid, particularly as many Kenyans prioritised reducing the high cost of living.
• One of the overarching objectives of the Kenya Kwanza government has been to create jobs for the youth.
Image: PCS
Upon his election in 2022, President William Ruto committed to a transformative leadership approach through the Bottom-Up Economic Transformation Agenda, focusing on five key pillars: Agriculture; Micro, Small and Medium Enterprise Economy; Affordable Housing; Universal Health Coverage; and the Digital Superhighway and Creative Economy.
These sectors were strategically chosen to address deep-rooted economic marginalisation and uplift those at the base of the economic pyramid, particularly as many Kenyans prioritised reducing the high cost of living.
Agricultural reforms
Recognising that food prices account for up to 54 per cent of household expenditures, the government prioritised agricultural reforms to lower food production costs, which significantly contribute to high prices and low yields.
A key initiative was the fertiliser subsidy, which reduced fertiliser prices by 58 per cent, from Sh6,000 in 2022 to Sh2,500 in 2024, saving farmers Sh3,500 per bag. Additionally, fertiliser distribution increased by 514 per cent, from 1.4 million bags in 2022 to 8.6 million in 2024, providing an extra 7.2 million bags to enhance food production.
These reforms led to a remarkable 38.9 per cent increase in maize production, rising from 61.74 million 50kg bags in 2022 to 85.7 million in 2023. This surge not only boosted farmers' incomes and created thousands of jobs but also improved Kenya’s food security, resulting in a 33.7 per cent reduction in maize imports, saving valuable foreign exchange. Notably, the price of a 2kg packet of maize flour dropped by 23.3per cent, fulfilling a key promise to Kenyans.
The government also expanded reforms across key value chains, including tea, coffee, dairy, edible oils, leather, cotton, and rice, further increasing productivity and farmers' incomes.
Empowering the MSME sector
One of the overarching objectives of the Kenya Kwanza government has been to create jobs for the youth. Acknowledging that the MSME sector employs approximately 85 per cent of Kenya’s workforce, the government focused on strengthening this sector to drive job creation and alleviate poverty. The aim is to empower MSMEs to absorb the growing number of young Kenyans entering the workforce each year.
Significant progress has been made in the MSME sector between 2022 and 2024. Key achievements include the launch of the Hustler Fund in 2022, which provides affordable credit to MSMEs and organised groups. To date, the fund has disbursed Sh54.9 billion to 22 million individuals and Sh185.8 million to 673,340 groups and MSMEs.
Additionally, the government refurbished 21 Constituency Industrial Development Centers to support key value chains and is constructing 19 County Aggregation Industrial Parks to enable small-scale farmers to benefit from economies of scale.
Affordable Housing initiatives
The need for new urban housing in Kenya is estimated at 250,000 units per year, while only 50,000 units are produced, resulting in a cumulative deficit of two million units. More than 60 per cent of urban Kenyans live in substandard housing, exposing them to health risks.
To address this, the government committed to building 200,000 affordable housing units annually, aiming to provide homes for those at the lower end of the economic pyramid while creating quality jobs.
Between 2022 and 2024, the government achieved a 1,061 per cent increase in affordable housing units, rising from 8,872 in 2022 to 103,000 in 2024, with Nairobi leading the way with 33,810 units.
The total number of jobs created in the affordable housing sector increased from 17,774 in 2022 to 140,610 in 2024, providing crucial employment opportunities, especially for youth.
Universal Health Coverage
The Kenya Kwanza government has pursued a comprehensive strategy to achieve 100 per cent universal healthcare, ensuring all Kenyans have access to affordable, quality healthcare. This strategy includes health financing reforms, improving essential supplies' availability, and expanding healthcare infrastructure.
Key components of the Universal Health Coverage initiative include the establishment of the Social Health Authority to manage health insurance funds. The government has also enacted several key laws to support SHA's operations.
To improve the supply of medicines and medical equipment, the government increased the Kenya Medical Supplies Authority’s supply fill rate from 59 per cent in 2022 to 62 per cent in 2024, supported by a Sh500 million recapitalisation. The government has also invested in expanding the medical workforce, with significant increases in the number of graduates from medical training colleges and registered nurses.
Advancements in digital infrastructure
The ICT sector has emerged as a crucial driver of economic growth in Kenya, achieving a growth rate of 10 per cent in 2022. The Kenya Kwanza government has leveraged the Digital Superhighway to enhance revenue collection, create jobs and support the other BETA pillars.
Efforts under this pillar include expanding universal broadband availability, increasing fibre optic cable installation by 111 per cent, and deploying 1,490 wi-fi hotspots nationwide. The establishment of 274 digital hubs has improved technology access in underserved communities.
Youth employment through the Ajira and Jitume Digital Jobs Programs increased by 409 per cent, while digital literacy training saw a 598 per cent rise, enhancing young people's prospects in the digital economy.
The eCitizen platform has also transformed government service delivery, with a 5,859 per cent expansion in services and a 652 per cent increase in revenue collection from digital services, showcasing the government’s commitment to advancing Kenya’s digital infrastructure.
Deputy Chief of Staff, Performance and Delivery Management, Executive Office of The President