State of the economy: Can Ruto sell his story to a skeptical nation?
President William Ruto heads to Parliament under pressure over debt, revenue gaps, slowing growth, and rising economic risks. Here’s a breakdown of Kenya’s key economic hits and misses ahead of his State of the Nation Address...
✨ Key Highlights
Kenya's President William Ruto is scheduled to address Parliament on Thursday regarding the State of the Nation, facing significant pressure over the country's economic performance, debt, and his bottom-up transformation agenda.
- Kenya's public debt remains a major concern, with nearly one-third of all tax revenue going towards interest payments, indicating a high risk of debt distress according to the World Bank.
- The World Bank cut Kenya's 2025 GDP growth forecast to 4.5 percent, citing high domestic debt and weak private-sector credit.
- Despite economic challenges, the administration has achieved some macro stability, with inflation easing and the Kenyan shilling stabilizing, alongside strengthened foreign exchange reserves.
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President Ruto Announces Infrastructure Fund and New Economic Policies - November 2025
President William Ruto announced the establishment of a new National Infrastructure Fund, designed to finance Kenya’s development projects without reliance on heavy borrowing and increased taxes. This announcement comes as President Ruto is scheduled to address Parliament on Thursday regarding the State of the Nation, where he will face pressure over the country's economic performance and his bottom-up transformation agenda. Separately, the Kenyan government is aiming to revive its textile industry, which has declined over decades, with a new policy to re-establish it as a major economic pillar for import substitution and export growth.
