Kenya’s economic projections are on an upward trajectory, with Prime Cabinet Secretary Musalia Mudavadi highlighting positive growth indicators despite a challenging start. Speaking at the Kenya School of Government during the 1st National Development Implementation Committee (NDIC) meeting of 2025, Mudavadi emphasized that the country’s economic growth improved from 4.8% in 2022 to 5.2% in 2023, with even stronger projections for 2024.
According to Mudavadi, inflation significantly dropped from 9.2% in September 2022 to 3.5% in February 2025, stabilizing the cost of living and improving household incomes. Additionally, the exchange rate has steadied, and interest rates have fallen, enhancing credit accessibility for the private sector. These improvements come amid the government’s mid-term review of its performance in service delivery.
Mudavadi stressed the need for Kenya to reduce its reliance on external assistance, particularly in light of global geopolitical changes and climate challenges. He noted that Kenya recently terminated its multi-year International Monetary Fund (IMF) programme, forfeiting over KSh 110 billion ($853.5 million) in budgetary support. To bridge this gap, the government is prioritizing internal revenue growth and tackling corruption. As part of these efforts, an IMF governance assessment is set for early June 2025 to identify vulnerabilities in key state functions.
On the social front, Mudavadi highlighted progress in the Universal Health Coverage (UHC) program, with over 20.6 million Kenyans registered. However, only four million have completed eligibility assessments for the Social Health Authority (SHA), leaving 80% unable to access full benefits. To address this, the government is ramping up public awareness and stakeholder engagement.
He also reassured private healthcare providers of the government’s commitment to settling historical National Health Insurance Fund (NHIF) debts, estimated at KSh 33 billion. So far, KSh 8.6 billion has been paid, with priority given to small hospitals owed KSh 10 million or less.
In the housing sector, the government has launched the construction of 95,737 affordable units, generating 200,000 jobs and creating business opportunities worth KSh 4.4 billion for small enterprises. Mudavadi affirmed the administration’s goal of building 250,000 houses annually, driving economic growth and resource distribution.
As Kenya Kwanza nears its mid-term, Mudavadi urged leaders to engage constructively with citizens to fulfill the government’s social contract, reinforcing their bid for another term in office.
