By: Joseph Mutua Ndonga
President William Ruto assumed office at a time when the country was facing four main challenges; biting drought rated to be the worst in 40 years, dilapidated economy, Russian-Ukraine war and at a time when the country was recovering from devastating effects of Covid-19 pandemic.
Two years down the line, he has made great progress in stabilizing the economy. This development have resulted to a drastic drop in cost of living.
Today, the inflation has dropped to 2.7% in 2024 from 6.9% in 2023. The value of Kenya Shilling has appreciated. The exchange rate now is at Sh127.60 against dollar from a high of Sh160.
The average bank lending rates have dropped to 15.3% from 16.1%. Debt to GDP now at 66% from 73% last year.
The prices of essential commodities have also dropped. 2kg maize flour to Sh127 from Sh230. 2kg sugar to Sh225 from Sh277. 2kg rice to Sh200 from Sh400. 1kg cooking oil to 200 from Sh400. 6kg cooking gas to Sh1,000 from Sh1,500.
The other key indicators are.
- Kenya Power (KP) reported a Sh30 billion net profit for the year ending June 30, 2024. This marks a significant return to profitability after more than seven years.
- KenGen recorded a 35% increase in profit after tax for financial year ending June 30, 2024. This marks a significant rising to Ksh6.8 billion, up from Ksh5 billion.
- National Carrier Kenya Airways (KQ) broke its streak of losses by posting a net profit of Ksh513 million in the half- year ending June, 2024. This marks a reduced debt service costs.
The prices of petroleum products have also dropped. 1 litre of petrol to Ksh180.66 from Ksh188.84. 1 litre of Diesel to Ksh168.06 from Ksh200.99. 1 litre of kerosene to Ksh151.39 from Ksh202.61.
After taking the oath of office, President Ruto assured Kenyans that he would follow the footsteps of President Mwai Kibaki. The remarkable steps he has taken so far reaffirms his commitment to walk the talk.
At the time, President Ruto rolled out a raft of interventions. One of them was the removal of subsidies on fuel and staple food that had been introduced by the outgoing ‘handshake’ government.
The economy cannot grow when billions of shillings set aside to provide crucial services to Kenyans were being diverted and ended up lining up the pockets of well-connected top oil marketers and proprietors of selected Maize millers.
After receiving huge chunks of tax payers’ money , these tycoons would only reduce the prices for one or two months.
For example, maize flour, the main staple food was supplied to a few chosen supermarkets and wholesalers.
Given the high demand, the flour would get depleted within hours.
The lucky ones would only be allowed to buy one packet of 2kg unga. So, many people particularly the downtrodden would return home empty-handed.
President Ruto would mince no word telling Kenyans that they were being duped.
The corrupt riddled personalities in the previous government were involved in these schemes of stealing your taxes. This will not happen under my watch.
Even if taxpayer’s money was not being embezzled subsidies the interventions were ill-advised. They cannot help the economy to grow.
The economy would grow if the government boosts the efforts of the people involved in production and value addition chains.
This is what I’m planning to do. Some of the key interventions he unveiled were; the procurement of subsidized fertilizer and supply of this essential farm inputs to farmers in all parts of the country.
On fuel, he started reaching out to the top leaders of the world’s leading oil producers. The talks have since borne the fruits.
The head of state had some months earlier reminded Kenyans that the prices of petroleum products were majorly controlled by the international markets.
Joseph Mutua Ndonga Is A Writer And Social Commentator
