- Two years down the line, Kenya’s economy is taking a positive trajectory. Kenya’s currency is now standing against major currencies, particularly the dollar. At the start of the year, the Kenyan Shilling was trading at 162 against the dollar. Since then, it has improved to 129.Additionally, the inflation rate has historically reduced to a low of 2.7%.
Is Kenya's Economy Finally Turning Around Under Ruto's Leadership?
11 Nov, 2024 03:00 PM
Kenya’s economic path is becoming more apparent as the shilling becomes stable, the inflation rate reduces, and major parastatals begin making profit after years of loss. During president William Ruto's election into office, the country was experiencing a severe economic crisis.
He had a big task ahead of him: to lower the high cost of living among Kenyans and implement the bottom-up economy. As a result, he and his government devised a ‘plan’ to actualize the promises made during the campaign period.
Two years down the line, Kenya’s economy is taking a positive trajectory. Kenya’s currency is now standing against major currencies, particularly the dollar. At the start of the year, the Kenyan Shilling was trading at 162 against the dollar. Since then, it has improved to 129. Additionally, the inflation rate has historically reduced to a low of 2.7%.
This has ensured that everyday goods are affordable to Kenyans. Compared to 2022, essential commodities have a significant price drop. For instance, the price of unga has dropped to 97ksh from 230kshs. 6 kgs cooking gas is retailing for 1000ksh from 1500ksh, and a kilo of sugar is currently at 110ksh from 250kshs. Fertilizer has been subsidized to 2500ksh from 7000 kshs, encouraging many farmers to practice agriculture and increase food production in the country.
Moreover, significant parastatals are now making profits after years of losses. In June, Kenya Power and Lighting Company(KPLC) registered a net profit of 30 Billion Kenya shillings, following a 2.3 billion net loss made in the previous year.
After a tax of 513 ksh, Kenya Airways generated a net profit that significantly improved from the 21.7 billion loss reported in 2023. This was the first time in over a decade that KQ was registering profit.
Even as Kenya approaches the next electoral period, 2027, Ruto’s economic strategy is seen to pay off. He is making a real difference in Kenya, where it matters most. The cost of living is taking shape, proofing that the plan is working.