Kwale: The Deputy Chief of Staff in charge of Performance and Delivery Management, Eliud Owalo, has lauded the ongoing government efforts aimed at revitalizing the country's economy, highlighting reduced inflation, stronger revenue collection, and improved foreign exchange reserves as key indicators of recovery.
According to Kenya News Agency, Owalo, addressing the Economists Society of Kenya's (ESK) annual conference at a hotel in Kwale, stated that the economy, previously described as being 'on its deathbed' in 2022, is now on a firmer footing. This recovery is attributed to deliberate fiscal and monetary interventions by the Kenya Kwanza regime.
Owalo noted significant economic improvements, including a drop in inflation from 9.2 percent in 2022 to 4.5 percent in 2025. Furthermore, the Kenyan shilling has appreciated against the dollar, rising from an average of Sh160 to Sh129 over the same period. Revenue collection has grown substantially from Sh1.9 trillion in 2022 to Sh2.9 trillion today, alongside a narrowing fiscal deficit from 6.2 percent to 5.8 percent.
He further detailed the rise in foreign exchange reserves from $7.7 billion in 2022 to $10.9 billion by August 2025. Despite challenges posed by a tight monetary policy, lending rates have stabilized at 15.24 percent after previously spiking above 20 percent.
Addressing public debt, Owalo acknowledged the increase from Sh8.76 trillion in October 2022 to Sh11.81 trillion by June 2025. However, he emphasized a slight improvement in the debt-to-GDP ratio, which decreased from 68.7 percent to 67.8 percent. He stressed the importance of utilizing borrowed funds to expand the economy and enhance the value of goods and services.
Looking ahead, Owalo pledged enhanced efficiency, transparency, and accountability within the government. As part of these efforts, an Office of Government Efficiency has been established under his portfolio to streamline processes, improve service delivery, and curb revenue leakages. He emphasized the need to prevent revenue loss and limit public officials from misusing public funds.
Additionally, Owalo revealed that the government recently conducted a midterm review of its development plan and will introduce targeted interventions to address lagging areas while consolidating progress made thus far.