Treasury CS Ndung'u reassures Kenyans the economy is stabilizing

Treasury Cabinet Secretary Prof. Njuguna Ndung’u has reiterated assurance that Kenya’s economy is steadily advancing in an upward trajectory.

Speaking during the second day of the Joint National Executive Retreat and Parliamentary Group consultative meeting convened in Naivasha on Tuesday, the CS underscored that the recent appreciation of the shilling against the dollar is just a glimpse of Kenya’s changing economic fortune.

“They are quiet now. Actually the noise in the exchange rate is positive… that it (Ksh) is appreciating,” he said.

“The beauty about an appreciating currency in a floating regime is that it provides a temporary nominal anchor to domestic prices so it means that it is going to push inflation and the interest rate down. We are going to actually have a very vibrant period.”

The Treasury CS further attributed the 4.6 percent growth in Kenya’s economic performance in Q4 2023 to policies implemented by the Kenya Kwanza government.

According to the 28th edition of the Kenya Economic Update (KEU), Kenya’s economy grew in 2023 despite with real GDP growth accelerating from 4.8% in 2022 to an estimated 5% in 2023.

The growth was attributed to a strong rebound in the agriculture sector in 2023 which had faced a persistent and severe drought as well as a moderate growth in the services sector.

On her part Council of Governors (CoG) Chair Kirinyaga Governor Anne Waiguru, emphasized the council’s support for Kenya Kwanza’s development agenda.

She, at the same time, however also asked the Executive to give the Governors ample time and space to execute the development agenda in their respective counties.  

“They (Governors) support Kenya Kwanza’s development agenda but they are urging that they be given their due space to deliver on devolution and I think the best way we can do that is when we work together in synergy,” she said.

“Look at the things we have achieved in health and cooperatives when we have met halfway. If we can do that with the few remaining ones we can go a long way than if we start pushing and pulling to replicate functions and duties that can actually be carried out better by the county governments.”