By Aoma Keziah,
Government spokesperson Isaac Mwaura has announced that the Kenyan government has achieved substantial progress in reducing the cost of living, a core promise outlined in its Beta plan. Spearheaded by President William Ruto, the government’s multi-sectoral approach has brought about significant economic relief for Kenyans.
Among the measures contributing to this improvement, the government has overseen a reduction in fuel prices without the need for subsidies. This has led to lower transportation and energy costs, with small business owners and everyday commuters feeling the immediate benefits.
“John Odongo, a boda boda operator in Kisumu, reported saving up to Ksh. 200 daily on fuel. These savings allow him to support his children’s education and offer more affordable rides, fostering local economic activity.” Mwaura said
He also stated that In a bid to boost food security, the government implemented a fertilizer subsidy program, which has helped farmers increase yields and bring down food prices.
“Staples like maize, beans, unga, and cooking oil which have become more affordable, with unga now retailing at around KSh100 per packet, cooking gas at KSh1,000, and cooking oil at KSh200 per liter. This initiative has notably eased household budgets nationwide.”Mwaura stated.
The government spokesperson continued to add that the Kenyan shilling has stabilized against the dollar, strengthening from KSh162 to KSh130. This stabilization has reduced import costs, especially for essential goods like fuel and pharmaceuticals, allowing businesses to plan their expenses more predictably. Additionally, inflation has dropped to a remarkable 3.6%, the lowest since 2012, down from 9% earlier this year, thanking the targeted reforms in agriculture and energy sectors.
“The economic improvements have benefited major corporations previously facing financial challenges. For instance, Kenya Power reported a net profit of KSh30 billion, while Kenya Airways posted a profit of KSh513 million in the first half of 2024, marking a turnaround from previous losses. KenGen also reported a 35% rise in profits, underscoring the country’s positive economic momentum.” He continued to say .
He also noted that The International Monetary Fund (IMF) recently recognized Kenya’s above-average economic growth, attributed to prudent management and early Eurobond debt repayment. Additionally, it approved $606 million for Kenya, which will be used for development projects, enhancing the country’s appeal to international investors.
Shifting to Public-Private Partnerships (PPPs), he asserted that they remain a cornerstone of Kenya’s development strategy.
“ Projects like the Nairobi Expressway and the Ruiru Affordable Housing Project illustrate the success of PPPs in infrastructure. Plans are also underway to expand Jomo Kenyatta International Airport through a KSh270 billion initiative, enhancing the airport’s capacity to handle rising passenger numbers.”He added.
The shift to the Social Health Insurance Fund (SHIF), he said that it has seen over 13 million Kenyans register with the Social Health Authority, moving the country closer to Universal Health Coverage.
“ SHIF has expanded access to healthcare through partnerships with over 8,800 facilities, including public, private, and faith-based hospitals. A dedicated KES 9 billion fund has been allocated to cover outstanding bills from the National Hospital Insurance Fund (NHIF) and to support critical services like cancer and renal care.” Mwaura affirmed .
According to him, the government’s Beta Plan has led to remarkable gains, bringing about greater economic resilience and affordability for Kenyans.
Mt Kenya Times