Kenya’s Fifth Administration Marks Midterm with Economic Rebound, Reforms, and Political Milestones

Nairobi, The Gulf Observer: As Kenya’s fifth administration, under President William Ruto, reaches its midterm, the government’s tenure has been defined by three major events: the Gen Z protests, the impeachment motion targeting Deputy President Rigathi Gachagua, and Raila Odinga’s bid for the African Union Commission chairmanship. Amid global trends of midterm unpopularity, Kenya’s administration finds itself at a pivotal moment, shaped by a post-pandemic recovery and deep economic reforms.

Elected on a platform focused on economic transformation, Kenya Kwanza became one of the first governments in the country’s history to ascend to power based largely on its manifesto, rather than ethnic alliances. President Ruto inherited a fragile economy, strained by prolonged electioneering and post-COVID-19 aftershocks.

Despite early challenges, the administration has taken bold steps to stabilize the economy. Foreign exchange reserves now exceed $9.6 billion, providing six months of import cover. The Kenyan shilling has strengthened, and inflation has reached an all-time low. Prices of essential commodities—including cooking oil, sugar, and maize flour—have fallen, easing the cost of living.

The government-to-government oil supply programme has played a key role in stabilizing fuel prices and supply, improving macroeconomic planning. In the energy sector, electricity costs have dropped by over 21%, reflecting the impact of effective policy shifts.

The administration’s Bottom-Up Economic Transformation Agenda (BETA) has seen tangible progress, particularly in agriculture. Farmers in the sugar, miraa, macadamia, and coffee sectors have recorded unprecedented earnings. Coffee prices, for instance, have reached Sh148 per kilo—a 35-year high. This marks a sharp reversal from the sector’s previous decline.

Efforts to enhance local processing are also underway, with tax waivers on tea packaging materials and the establishment of a tea academy at Kabianga University. These efforts are revitalizing rural communities and strengthening value chains.

The government’s Affordable Housing Programme has transformed Kenya into a national construction hub. For the first time since independence, social housing units are being made available to low-income earners, with monthly payments starting at just Sh3,900. More than 250,000 jobs have been created under this initiative, with over 400 construction sites active and 700,000 units in the pipeline.

The Hustler Fund, a flagship initiative to boost financial inclusion, has disbursed over Sh70 billion to 25 million Kenyans, including small traders and informal sector workers. With more than Sh4.4 billion saved so far, the fund is becoming an accessible alternative to traditional banking.

On infrastructure, securitisation of the Sh7 Roads Maintenance Fuel Levy has re-energized road construction, enabling better access for goods and services across the country.

These initiatives have collectively spurred Kenya’s economic rebound, positioning the country as the third-largest economy in sub-Saharan Africa, after Nigeria and South Africa.

As Kenya moves toward the 2027 general elections, the Ruto administration is betting on its economic track record to define its legacy. Supporters argue that the policies enacted have laid a firm foundation for long-term growth and social transformation—lifting millions “from the bottom up.”