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Kenya’s 60th independence anniversary, celebrated on December 12, was met with positive news, as the country’s head of State, President William Ruto, proclaimed that Kenya was emerging “out of debt distress.”
The president lauded his reforms despite the backlash that came as a result. He noted that the tax hikes and subsidy removal had begun to yield dividends in the form of debt relief.
Kenya throughout the year has had to deal with some inconvenient economic issues. From tax increases to fuel hikes, the country’s inflation rate reached heights that oftentimes sparked outrage.
Kenya also had a debt of Ksh10,1 trillion (US$66 billion) by the middle of the year, according to a report by The East African.
Although the aforementioned debt amount accounted for two-thirds of the country’s GDP, the president during his Independence Day speech revealed that Kenya is currently out of dodge as he noted that Kenya is “safely out of the danger of debt distress.”
He also mentioned that the Kenyan economy is on the rise, citing a GDP growth of approximately 5,4 percent in the last six months.
“We have made the right choices, sometimes taken very difficult and painful decisions, to steer Kenya back from the edge of a catastrophic cliff of debt distress and move our country in a new direction,” he said.
In October, it was reported that the country’s inflation over 12 months, rose for the third month in a row, owing mostly to rising gasoline costs. However, food costs began to decline as a result of the favourable weather. Also in the same month, the value of the shilling relative to the dollar has been trading at a record low of 151,3.
The country’s economy for months now has been marred with a weakening Shilling and rising inflation levels, with the silver lining being the increase of the country’s economy, and now the president’s revelation that the country is on a clear path to experiencing a major debt relief. — Business Insider Africa.
Online Reporter