Homa bay: National Treasury Cabinet Secretary (CS), John Mbadi, has assured Kenyans that the economy is stabilizing, emphasizing that citizens will soon reap the benefits. He urged government critics to refrain from commenting on the economy’s status in public forums without concrete evidence to support their claims.
According to Kenya News Agency, the CS stated that the national treasury had successfully managed to stabilize the economy and that the government remains committed to increasing the financial well-being of ordinary citizens.
Mbadi acknowledged ongoing economic challenges but highlighted robust mechanisms put in place by his ministry to improve key sectors of production. Speaking at the launch of the Homa Bay County Press Club, he cited successful liability management to avoid defaulting on external loan repayments as a significant achievement. ‘We have managed to flatten the curve in debt repayments. We had syndicated loans of USD 900 million. This year, we have paid almost USD 600 million. We will pay the remaining amount by 2027,’ the CS stated, emphasizing the importance of early repayment to avoid straining the country’s finances.
The CS revealed that Kenya still needs to repay USD 1 billion by 2028, warning against waiting until the deadline due to potential currency depreciation. He announced that the National Treasury has increased the debt stock by Sh1 trillion without borrowing from the international market. Furthermore, a new Eurobond has been successfully raised, which will be split into two repayment periods. One bond will be repaid between 2030 and 2032, with Sh250 billion repaid annually, while another 12-year bond will be paid from 2036, a strategy referred to as ‘smoothing the maturity of the debt stock.’
Investors, according to the cabinet secretary, display significant confidence in the Kenyan economy, indicated by the reduced yields on bonds and improved credit ratings. ‘The yield in our bond has gone down because the credit rating for Kenya has gone up because the confidence level in our economy has also gone up,’ he explained. Mbadi affirmed the government’s dedication to prudent debt management, which includes timely loan repayments and protecting citizens from sudden repayment shocks.
Finally, Mbadi highlighted the Treasury’s commitment to reducing interest expenses, thereby easing pressure on taxpayers while maintaining economic stability. This strategy aims to create fiscal space for funding development priorities such as infrastructure, healthcare, and education.
