Government spokesperson Isaac Mwaura giving a press statement on the state of the nation on November 4, 2024.
Government spokesperson, Isaac Mwaura, announced today that Kenya has made significant progress in reducing the cost of living, marking a major milestone in its Beta Plan. Speaking at the Kenyatta International Convention Centre, he outlined how these initiatives are directly benefiting Kenyans in several areas, including transport, food security, healthcare and economic growth.
Under the leadership of President William Ruto, the government has put in place targeted strategies to improve affordability and the results are already visible. Fuel prices have fallen significantly without the use of subsidies, resulting in immediate savings for ordinary citizens. For example, John Odongo, a boda boda rider from Kisumu, shared how he now saves up to KSh200 a day on fuel, allowing him to better support his family while offering affordable rides to the local community.
Food prices have also fallen, thanks to a fertiliser subsidy programme aimed at increasing agricultural productivity. Farmers in regions such as the Rift Valley and Central Kenya report increased yields of staple crops such as maize and beans, resulting in lower prices for essential household items. Basic commodities such as flour, sugar and cooking oil have become more affordable, providing much-needed relief to families across the country.
Another success has been the stabilisation of the Kenyan shilling, which has strengthened from KSh162 to the dollar at the beginning of the year to KSh130. This currency stabilisation is helping to contain import costs and provide price predictability for goods such as fuel and medicines. Businesses and importers can now plan their budgets more confidently, contributing to a healthier economy.
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The government’s anti-inflation efforts have also borne fruit. Kenya’s inflation rate has fallen from 9 per cent earlier this year to 3.6 per cent, the lowest since 2012. This reduction in inflation is helping households to manage their budgets more predictably, as everyday prices have stabilised. Key industries are also benefiting from this economic growth. Kenya Power and Lighting Company posted a net profit of KSh30 billion due to increased electricity sales and lower financing costs, while Kenya Airways reported a positive turnaround, posting a profit after tax of KSh513 million in the first half of 2024.
Public-private partnerships (PPPs) have become a cornerstone of the government’s economic strategy to spur development while controlling public debt. Landmark projects such as the Nairobi Expressway and the Ruiru Affordable Housing Project demonstrate how PPPs are transforming Kenya’s infrastructure. The government is also planning a major expansion of Jomo Kenyatta International Airport, valued at around KSh270 billion, using a similar PPP approach, mirroring successful models such as the expansion of Heathrow and JFK airports.
In healthcare, the new Social Health Insurance Fund (SHIF) is a landmark step towards universal health coverage. More than 13 million Kenyans have enrolled in the Social Health Authority (SHA), demonstrating the country’s commitment to accessible healthcare. The SHA has integrated more than 8,700 public and private healthcare facilities, and patients requiring costly treatments such as dialysis and cancer treatment are now fully covered by the SHIF. Stanley Mwiti, a dialysis patient in Nakuru, expressed relief that SHIF’s full coverage of his weekly sessions had removed a financial burden.
With inflation under control, a growing economy and support from international organisations, Kenya’s financial outlook continues to improve. The International Monetary Fund recently approved a $606 million loan to support Kenya’s development projects.
