NAIROBI – President William Root defended the administration’s controversial economic decision, saying they are fruitful and they are placing Kenya among Africa’s major economies, according to new data from the International Monetary Fund (IMF).
Speaking during the Labor Day celebration at Uhuru Gardens, the president said bold reforms in the government, although unpopular, are important to ensure the country’s long-term prosperity and economic independence.
“Some of the decisions we made may not have been popular, but they are necessary,” Root said. “And today, thanks to these decisions, the IMF places Kenya in one of the top five performance economies on the continent.”
He said his administration is still committed to taking difficult but necessary steps to build a resilient and productive economy, adding that the 2025 financial bill approved by the Cabinet this week is part of its broad transformation plan.
The head of state has selected reforms in taxation, pensions, agriculture, housing and social protection as key pillars of the transformation. He said measures such as tax exemptions on pensions and direct application of pay relief will boost workers’ incomes, while simplified tax policies will help small and medium-sized businesses flourish.
Ruto cited doubling national savings through the National Social Security Fund (NSSF). This saved from KSH32 billion over 60 years, saving to Ksh280 billion in just two years from the implementation of the new 6% saving rate for both employees and employers.
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“If we stay on the course, we will surpass KSH1 trillion in national savings by 2027. That is the foundation of a truly independent economy,” he declared.
The president also touted his bottom-up economic transformation agenda, touting increased corn production, the revived sugar and coffee sector, and the creation of over 250,000 jobs under the Affordable Housing Program as a sign of progress.
On health, Ruto said that as part of the promotion of universal health insurance, more than 21 million Kenyans have so far registered under the new Social Health Bureau and replaced the National Hospital Insurance Fund (NHIF).
He vowed to maintain momentum regardless of criticism.
Workers’ Day is prominent amid growing public concern over high cost of living, heavy taxes and public debt, and is an issue that has sparked acute criticism from trade unions and civil society groups.
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