Kenya’s Treasury and Economic Planning Cabinet Secretary, John Mbadi, has acknowledged the country’s current economic challenges, admitting that the economy is not on the right trajectory. However, Mbadi expressed confidence in the country’s ability to recover, stressing the importance of long-term solutions to address the fiscal crisis.
During a graduation ceremony at Migori Teachers Training College, Mbadi pointed out that Kenya’s over-reliance on short-term loans to finance long-term projects had contributed to the current economic stagnation. “It is true that our economy is not doing very well. It is largely because at one time we took short-term loans to develop long-term projects,” he said. The Cabinet Secretary assured the public that he was committed to restructuring the economy, although he acknowledged that recovery would take time.
Looking ahead, Mbadi emphasized that his debut budget for the 2025/2026 financial year would be transformative and would aim to address the root causes of the country’s financial difficulties. “This will be my first budget, I will be fair to the whole country,” he stated, while urging members of the National Assembly not to obstruct his efforts.
Local leaders, including Migori County Governor Ochilo Ayacko and Nyatike MP Tom Odege, also shared their concerns during the ceremony. Governor Ayacko highlighted the plight of teachers in Kenya, noting that they are underpaid and often face long delays in promotions. He urged Mbadi to prioritize increasing budget allocations for the employment and remuneration of teachers, warning that the ongoing economic struggles could further demoralize them and affect their productivity.
Mbadi’s remarks echo the Treasury’s ongoing concerns about Kenya’s fiscal health. On March 25, he warned that Kenya’s heavy borrowing, both domestically and externally, has resulted in high debt-servicing costs, with around two-thirds of the country’s annual revenue going toward repaying debt. The country is currently grappling with a staggering Ksh.10 trillion in debt, forcing the government to look inward for solutions to ease the financial burden.
While the road to economic recovery may be challenging, Mbadi’s optimism and determination to implement transformative changes offer hope for the future.
