• The Nairobi Securities Exchange recorded its strongest performance since the pre-COVID period, with the NSE 20 Share Index jumping 52.4 per cent in January 2026 compared to January 2025.

Kenya’s economy is set to sustain its upward momentum, with growth projected at 5.0 per cent in 2025 and accelerating to 5.3 per cent in 2026, according to Chris Kiptoo, Principal Secretary at the National Treasury.

He affirmed this while presenting the 2026 Budget Policy Statement to the Departmental Committee on Finance and National Planning of the National Assembly of Kenya, chaired by Molo Member of Parliament (MP) Kuria Kimani.

The MP highlighted the importance of the meeting, saying, "Our commitment is clear: every shilling must work for the Mwananchi; for jobs, dignity, and real development."

MP Kuria Kimani, Chair of the Departmental Committee on Finance and National Planning of the National Assembly. (Photo Credit: Kuria Kimani/ X )

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Dr Kiptoo attributed the positive outlook to improved agricultural output, steady growth in the services sector and robust diaspora remittances. He noted that macroeconomic stability has continued to strengthen, underpinned by a rise in foreign exchange reserves. 

“Our official foreign exchange reserves rose to USD 12.1 billion, equivalent to 5.2 months of import cover, by December 2025, up from USD 10.1 billion in 2024, therefore strengthening investor confidence and the business environment,” the PS said.

Additionally, the Principal Secretary added that the improved reserve position has reinforced market confidence and created a more favourable climate for business and investment.

Capital markets have also mirrored the broader economic recovery.

The Nairobi Securities Exchange (NSE) recorded its strongest performance since the pre-COVID period, with the NSE 20 Share Index rising by 52.4 per cent in January 2026 compared to January 2025.

On fiscal reforms, Dr Kiptoo affirmed the government’s commitment to strengthening public finance management.

“We will continue to prioritise enhanced domestic revenue mobilisation, expenditure rationalisation, digitisation of public finance systems, full implementation of e-procurement, transition to accrual accounting," he said.

He underscored that the reform agenda is aimed at improving efficiency, curbing revenue leakages and ensuring prudent utilisation of public resources to support Kenya’s long-term development goals.

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