Press Statement by Government Spokesperson

 

PRESS STATEMENT BY THE GOVERNMENT SPOKESPERSON HON. SEN. (DR.)

ISAAC MWAURA, CBS, AT KICC 23RD FLOOR ON FRIDAY 4th November 2024.

LOW COST OF LIVING

1. The Government is pleased to announce substantial progress in reducing the cost of

living for Kenyans, fulfilling key commitments outlined in THE BETA PLAN.

2. Under the leadership of President William Ruto, the government has taken decisive

steps to alleviate the high cost of living, directly impacting Kenyans’ daily expenses.

3. Fuel prices have now gone down without subsidies. Kenyans are experiencing

immediate savings on transport and energy costs. This change benefits not only

consumers but also small businesses and agricultural producers who rely on

affordable transportation to bring products to market. 

4. Reduced Food Prices Supported by the Fertilizer Subsidy Program: To

boost food security and ensure accessible pricing, the government launched a

fertilizer subsidy program aimed at enhancing farm productivity and increasing

yields. Farmers in regions such as the Rift Valley and Central Kenya have

benefited significantly, reporting higher harvests that have led to more affordable

staple foods, like maize and beans, across the nation.

As a result, basic household commodities, which had previously experienced

steep price increases, have become more affordable. 

6. The Kenyan shilling has seen remarkable stabilization against the dollar, now

standing at KSh130 compared to KSh162 at the beginning of the year. This

currency stability is a major advantage, especially in a global economic landscape

that faces persistent volatility. This has led to greater predictability for import costs,

which has a ripple effect across various sectors. Importers of essential goods—such

as fuel, pharmaceuticals, and industrial machinery—can now plan and budget more

effectively, as stable currency rates reduce unforeseen expenses.

7. Kenya’s inflation rate has shown a marked and steady reduction as a result of

targeted economic reforms in key sectors, particularly in energy and

agriculture. Inflation has dropped to 3.6%, the lowest level since 2012, down

from 9% earlier this year.

Economic Growth

8. As a result of the economic growth, several corporations that were previously

struggling financially are now on a profitable trajectory, including:

i. Kenya Power and Lighting Company - Reported a net profit of KShs.30

billion. 

ii. Kenya Airways - For the first half of 2024, Kenya Airways reported a profit

of KSh 513 million after tax. This marks a significant turnaround from the

KSh 21.7 billion loss reported in the same period last year.

iii. KenGen – Reported a 35% profit after tax for the fiscal year ending June

30, 2024.

9. The International Monetary Fund (IMF) has affirmed that Kenya’s economic

growth is above average, attributing it to the prudent management of Kenya’s

Economy and the early repayment of the $2 billion Eurobond debt. 

government remains committed to strengthening Public-Private 

Partnerships (PPPs) because they are vital for sustainable development. Today’s 

economic challenges make it essential for Kenya to embrace PPPs as an alternative 

to traditional financing models. 

10.Beyond infrastructure, PPPs offer Kenya many advantages. They help reduce public 

debt, as the government can allocate resources to other priorities while the private 

sector shares project risks. Private sector efficiency and modern management 

practices make PPPs more cost-effective, delivering high-quality services and 

ensuring better value for Kenyans.

11.Notable projects such as the Nairobi Expressway and the Ruiru Affordable 

Housing Project illustrate how public-private partnerships (PPPs) are already 

transforming Kenya. One prominent example currently in development is the Adani 

JKIA Privately Initiated Program (PIP), valued at approximately Ksh 270 

billion project that aims to expand Jomo Kenyatta International Airport. Originally 

designed in 1978, the airport’s infrastructure has been exceeded by the growing 

passenger capacity, underscoring the urgent need for expansion. 

III. SOCIAL HEALTH INSURANCE FUND (SHIF)

12. The shift to SHIF has seen over 13 million Kenyans register with the Social 

Health Authority (SHA), marking a critical achievement toward Kenya’s vision for 

Universal Health Coverage under the Bottom-Up Economic Transformation Agenda 

(BETA). This extensive enrolment signifies the collective commitment of Kenyan 

citizens toward an equitable, accessible, and resilient healthcare system.