Treasury Cabinet Secretary John Mbadi has said the current administration has taken decisive steps to stabilise and “de-risk” Kenya’s economy, blaming previous leaders for failing to address critical challenges.
Speaking at a public event attended by President William Ruto, Mbadi said earlier administrations did not adequately prepare for looming economic risks, leaving the country exposed.
“Leaders who were there before did not take time to address some of the challenges in our economy that were so obvious,” Mbadi said. “Under your leadership, we have managed to de-risk this economy.”
The CS cited the $2 billion Eurobond that matured in June 2024 as an example of what he termed poor planning by the previous regime.
He said no clear strategy had been put in place to manage the repayment, exposing the economy to significant risk.
According to Mbadi, the uncertainty surrounding the Eurobond repayment contributed to a dollar shortage in early 2024, making it difficult for Kenyans to access foreign currency.
“Kenyans could not even find dollars. If you went to the bank to get $2,000 to pay school fees abroad, you would be lucky to get $500,” he said.
Mbadi, however, maintained that the situation has since improved, crediting the Ruto administration with restoring confidence in the economy and reducing the risk of near-term debt default.
He pointed to recent credit rating upgrades as evidence of economic recovery, noting that Moody’s had revised Kenya’s rating from Caa1 with a positive outlook to B3 with a stable outlook.
“It is not a coincidence that Moody’s has said we now have a stable outlook. If people say the economy is in shambles, yet we have improved our rating, what more evidence do you want?” Mbadi posed.
The remarks come amid ongoing public debate over the state of the economy, the cost of living, and the government’s fiscal reforms.
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