President William Ruto’s Cabinet has defended Kenya’s economic progress in response to criticism from the Kenya Conference of Catholic Bishops.
In a statement on Thursday, November 14, the Bishops accused the government of failing to meet financial commitments to faith-based hospitals.
The government countered the bishops’ statement hours later during a Cabinet briefing noting that it had disbursed Ksh5 billion to these institutions in the past month.
Addressing mass layoffs linked to high operating costs, the Cabinet highlighted alternative achievements, including facilitating job placements abroad for 100,000 Kenyans.
During the briefing, officials showcased various indicators of recovery under the Kenya Kwanza administration.
"Things are not bad. Global economy is growing at 3%. Kenyan economy grew 5.6% last year, this year 5% next year 5.4%," remarked Treasury Cabinet Secretary John Mbadi.
Citing an inflation rate drop to 2.7%—the lowest since 2007—officials pointed to reduced prices for basic goods.
They noted that a 2kg packet of maize, a staple for Kenyan households, had dropped from Ksh176 last year to Ksh124, attributing this to the government’s subsidized fertilizer program.
The Cabinet also reported an unprecedented rise in foreign exchange reserves to USD 9.5 billion and a stable exchange rate of 129 shillings to the dollar, framing these factors as signs of stability.
At the same time, Interest rates are beginning to decline, reducing domestic borrowing costs, which officials say will create fiscal room for additional support.
Treasury CS Mbadi called for further policy shifts, suggesting tax reductions to stimulate growth, a position partially echoing the church’s call for economic justice.
Consequently, officials also noted that tax revenue had grown by 11.5% in the year leading to June and the food supply remained stable, thanks to ongoing support measures for farmers, which they believe will continue to ease the cost of essential food items across the country.
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