The Government has reiterated that the Bottom-Up Economic Transformation Agenda (BETA) plan was designed to stimulate economic growth, create jobs, and promote inclusive development by addressing critical challenges such as poverty and unemployment.
Towards this end, the Government announced that it has achieved significant progress, including; bringing down inflation to 2.7 percent from 9.6 percent in August 2024 which marks a return to the Central Bank’s (CBK) target range of 2.5 and 7.5 percent.
This decline, according to the Government Spokesperson Dr. Isaac Mwaura, is as a result of effective fiscal management, stabilization of food prices and reduction in the cost of essential commodities like maize and sugar leading to a lower cost of living.
In addition to inflation control, Dr. Mwaura reported that interest rates have also seen a downward trend noting that the CBK reduced its base lending rate from 13 percent in August 2024 to 11.25 percent in December 2024.
“This reduction has eased borrowing costs for businesses and consumers, encouraging investment and economic activities,” he explained.
Moreover, the Government Spokesperson stated that Kenya’s exchange rate has shown remarkable stability with the Kenyan Shilling trading at approximately Sh129 per USD as of January 2025.
According to Dr. Mwaura, this positive outlook has been reinforced by Moody’s report of January 24, 2025 on the revision of Kenya’s credit rating from “negative” to “positive” which reflects the government’s success in fiscal consolidation, improved liquidity and debt affordability.
Speaking at a media briefing in Nairobi, the Government Spokesperson highlighted that declining domestic financing costs and strong multilateral support, including potential programmes from the International Monetary Fund (IMF) and the World Bank, further strengthened Kenya’s external financing position.
He added that this stability, underpinned by prudent monetary policies and increased foreign reserves, has enhanced investor confidence and streamlined international trade.
Dr. Mwaura re-assured the public that the government is committed to doing more to better the welfare of Kenyans and called for cooperation of the citizens by supporting its programmes, projects and other initiatives for the betterment of us all.
On the support for HIV patients, he made assurances to all affected individuals that the Government is committed to their well-being despite the recent halt in funding and support for HIV patients by the Trump administration.
“The government is actively mobilizing local resources, seeking new partnerships and donors to ensure that your treatment and care continue uninterrupted. Your health and safety are our top priorities, and we will leave no stone unturned in our efforts to provide the necessary support during this challenging time,” he re-affirmed.
Meanwhile, Dr. Mwaura announced that the Government, faced with the deeply concerning rise in femicide, has established a focused task force to address this critical issue decisively.
Although constitutional bodies like the Kenya National Commission on Human Rights (KNHCR) perform a range of key functions, the Government Spokesperson insisted that the task force is dedicated solely to combating femicide, ensuring focused and specialized interventions urgently needed to eradicate this grave societal menace.
On cash transfer through the Inua Jamii programme, he disclosed that the government disbursed Sh3.52 billion in December 2024, benefitting over 1.7 million vulnerable citizens across the country.
To further enhance efficiency and convenience for beneficiaries, Dr. Mwaura revealed that a new MPESA based payment system is currently being piloted.
“This innovative approach aims to streamline disbursements, reduce delays, and ensure that funds reach the intended recipients seamlessly, reinforcing the government’s commitment to support the most vulnerable members of society,” he asserted.
Conversely, on Kenya’s transport infrastructure, Dr. Mwaura mentioned that the Government, through the Ministry of Roads and Transport, has championed transformative projects that are fueling economic growth and creating opportunities for Kenyans.
The Spokesperson announced that the completion of development of the Dongo Kundu Special Economic Zone, along with the modernization of Kenya’s ports, has positioned the country as a regional trade hub.
“The ports now handle 41.1 million tons of cargo and 2 million containers up from 35.9 million tons and 1.6 million containers, respectively,” he highlighted, adding that these efforts are facilitating seamless trade, empowering small-scale traders and driving industrial expansion.
Similarly, Dr. Mwaura pointed out that the rehabilitation of the Metre Gauge Railway (MGR) and the introduction of the Standard Gauge Railway (SGR) premium services have significantly improved both freight and passenger mobility.
“These improvements are creating thousands of jobs and reducing transportation costs,” maintained the Spokesperson, citing programmes like LAPSSET, which have generated 5,600 direct jobs, showcasing the government’s commitment to fostering regional partnerships and uplifting local communities.
He reiterated that these unfolding transformative initiatives manifest the Government’s unwavering dedication to building a brighter and more sustainable future for all Kenyans.
By Michael Omondi