Kenya Avoided Debt Crisis After Ruto Made Tough Economic Choices
The President was speaking while receiving the latest findings from Jukwaa la Usalama, a forum that brings together local leaders to discuss security and public concerns across the country.
Ruto said the forum gave him an opportunity to speak honestly about the difficult economic situation he found when he entered office.
According to the President, Kenya was facing rising inflation, a weakening shilling, and shrinking foreign reserves.
According to the President, Kenya was facing rising inflation, a weakening shilling, and shrinking foreign reserves.
He explained that these problems did not appear suddenly but had been building over time. By the time he took power, inflation was high, the dollar exchange rate was climbing quickly, and the country’s foreign reserves had dropped to dangerously low levels.
Ruto recalled a meeting with United Nations Secretary-General António Guterres, who had raised concerns about what Kenya would do if it reached the point where it could no longer pay its debts. The President said the conversation made him realise how close the country was to a crisis.
He told the State House gathering that he had to choose between keeping popular subsidies or protecting the country’s financial stability. To prevent the economy from collapsing, he chose to remove the fuel and flour subsidies. He also admitted that he delayed some debt repayments so the country could stay afloat.
Ruto said these decisions were not easy and caused a lot of criticism, but he believed they were necessary. He added that at the time, several countries were expected to default on their sovereign debts. Out of six at high risk, five eventually did—while Kenya avoided the same fate.
According to Ruto, the results of those sacrifices are now becoming visible. He said the economy is gaining stability, inflation is easing, and the shilling is performing better compared to the period of crisis.
The President emphasized that he takes his responsibility seriously and wants Kenyans to hear directly from him about the challenges the country has faced. He praised the Jukwaa la Usalama forum for allowing honest discussions and said he will continue working to strengthen both the economy and national security.
Ruto recalled a meeting with United Nations Secretary-General António Guterres, who had raised concerns about what Kenya would do if it reached the point where it could no longer pay its debts. The President said the conversation made him realise how close the country was to a crisis.
He told the State House gathering that he had to choose between keeping popular subsidies or protecting the country’s financial stability. To prevent the economy from collapsing, he chose to remove the fuel and flour subsidies. He also admitted that he delayed some debt repayments so the country could stay afloat.
Ruto said these decisions were not easy and caused a lot of criticism, but he believed they were necessary. He added that at the time, several countries were expected to default on their sovereign debts. Out of six at high risk, five eventually did—while Kenya avoided the same fate.
According to Ruto, the results of those sacrifices are now becoming visible. He said the economy is gaining stability, inflation is easing, and the shilling is performing better compared to the period of crisis.
The President emphasized that he takes his responsibility seriously and wants Kenyans to hear directly from him about the challenges the country has faced. He praised the Jukwaa la Usalama forum for allowing honest discussions and said he will continue working to strengthen both the economy and national security.
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