Kenya Projects 5.5% Economic Growth In 2024, John Mbadi Promises To Reduce Debt

• Treasury Cabinet Secretary (CS) John Mbadi highlighted the steps Kenya took to ensure economic growth
• According to the CS, the country managed to turn around the economy by stabilising the shilling and containing inflation
• On the debt payment, the CS noted that the government currently focuses on fiscal consolidation measures to improve the economy

Treasury Cabinet Secretary (CS) John Mbadi has confirmed that Kenya's foreign exchange is now stable.

Mbadi noted that the country's forex cover currently stands at four months of imports (4.6), which is a key growth factor.

What's the current exchange rate?

Speaking during the official opening of Kenya Re CEO Summit 2024 on Wednesday, September 18, Mbadi highlighted the steps the country has taken to achieve this.

"Our forex cover is at over 4.4 to 4.6 months of imports cover. Our foreign exchange has now stabilised after paying the Euro bond," said Mbadi.

Mbadi explained that the Kenya Shilling remains stable against the US dollar, exchanging between KSh 128 to 130.

Kenya's economic growth

According to the CS, the country managed to turn around the economy by stabilising the shilling, containing inflation now below the CBK mid-point and paying debt.

"Kenya's economy has been resilient, growing by 5% in the previous year. We are projecting a growth rate of 5.2/4% in the fourth quarter of 2024 and 5.5% in the medium term, early next year," he said.

On the debt payment, the CS noted that the government currently focuses on fiscal consolidation measures to improve the economy.

"We are consolidating our policy to deal with public debt. These include but not limited to expenditures. Yesterday I signed a KSh 560m deal that will ensure we get an e-procurement system that will ensure transparency in rendering," he noted.

Ruto meets with World Bank over concessional funding

Meanwhile, President William Ruto met with the World Bank team in Nairobi, praising Kenya's partnership with the global lender.

Ruto emphasized that the discussions were anchored on concessional financing and debt sustainability.

World Bank Regional Vice-President Victoria Kwakwa and the new country director Qimiao Fan attended the meeting at State House.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke