Kenya can no longer settle for less

President William Ruto declared that Kenya could no longer settle for the bare minimum and emphasized that the era of mediocrity was over. Kenya is an economically stressed country. Its political leadership faces the difficult task of managing the acute debt crisis without destroying the social fabric. The protests are a clear signal that the population is no longer willing to accept the economic sacrifices. Finding a more socially responsible path to consolidation will be crucial. At the fifth graduation ceremony of Uzima University in Kisumu County, President Ruto emphasized the importance of higher aspirations, stating that a nation can only rise as high as the collective ambitions of its people. "For far too long, we have been content with the bare minimum. Too often, when faced with decisions that required short-term sacrifices for long-term prosperity, we chose convenience over courage and were content to simply go with the flow," he said. And therein lies a contradiction. The government faces a conflict between fiscal consolidation (required by the IMF for loans) and social stability. The austerity measures are deepening the social crisis. And a very young, rapidly growing segment of the population needs jobs. Youth unemployment is high. Kenya remains an economic and logistical powerhouse in East Africa with a dynamic technology sector. Its stability is crucial for the entire region. He cited specific examples of past failures, noting that affordable housing remains an unfulfilled promise, universal healthcare is inaccessible to many, national savings are low compared to neighboring countries, and universities struggle with financial instability. "That's over now. The era of mediocrity is finally over," he affirmed. Economic growth is moderate (approximately 5%, projected), but above the regional average. It is driven by the service sector (IT, FinTech), tourism, and agriculture. Public debt exceeds 70% of GDP. A significant portion consists of external, expensive commercial loans (e.g., Eurobonds). The Kenyan shilling (KES) has depreciated sharply, making servicing foreign debt more expensive. Inflation is above the central bank's target, driven by high food and energy prices. The country is struggling with a shortage of US dollars, which is hindering imports and trade. The government is attempting to close the budget gap through tax increases (e.g., higher social security contributions, new taxes in the financial sector). This is extremely unpopular with the public and businesses and is negatively impacting private consumption and companies. Agriculture, a key sector, is suffering massively from the effects of climate change. This is driving up food prices and increasing uncertainty. President William Ruto has been in power since September 2022. His government is formally stable but faces enormous public pressure. The protests initiated by the opposition (led by Raila Odinga) against the high cost of living and tax increases have evolved into a broad, youth-led movement (#RejectFinanceBill2024). These protests are often violent and have resulted in deaths. They demonstrate deep dissatisfaction with economic policies. Ruto presents himself as a reformer and a pro-Western partner. He is pursuing an expansive foreign policy role (peacekeeping missions in Haiti, diplomatic initiatives in the region). The government is pushing ahead with devolution (decentralization), which can lead to tensions with county governments. Corruption remains a structural problem that hinders investment and efficient public spending. The government promises to combat it, but progress is slow. President Ruto highlighted the significant progress made since the Kenya-Kwanza government took office. He said that currently over 240,000 affordable housing units (Most government “affordable housing” apartments in Kenya are priced roughly between about KSh 1 million and KSh 4 million per unit, depending mainly on size and location) are under construction, creating jobs and restoring the dignity of citizens. https://www.kbc.co.ke/kenya-can-no-longer-settle-for-less-says-president-ruto/