PS Kiptoo Projects Double-Digit Economic Growth as Kenya Maintains 5pc Expansion

KISII, Kenya Nov 2 – National Treasury Principal Secretary Chris Kiptoo says Kenya is laying the foundation for double-digit economic growth, citing improved macroeconomic stability and rising investor confidence.

Kiptoo said the economy’s current growth rate of approximately 5 per cent demonstrated resilience amid global economic uncertainties and challenges affecting several African economies.

Speaking at Osinani Catholic Church in Kilgoris, Transmara West, the PS said Kenya had outperformed several economies on the continent, many of which were recording growth rates of between 2 and 3 per cent.

“If you look at the continent, many countries are averaging 2 to 3 percent growth. Kenya is at 5 percent. That is no small achievement. It shows we have laid a foundation for a double-digit growth rate,” Kiptoo said.

He attributed the performance to government efforts to stabilise the macroeconomic environment, contain inflation and strengthen the Kenya shilling, arguing that the measures had helped restore investor confidence.

Kiptoo revealed that Foreign Direct Investment (FDI) into Kenya had doubled over the past four years to reach $3.2 billion, compared to approximately $1.5 billion in 2021.

He said the government was targeting to increase foreign investment to $10 billion by 2027, citing efforts to improve the business environment, settle pending bills and open up previously restricted economic sectors.

“For the last four years, foreign direct investment has doubled to 3.2 billion dollars and we are hoping for 10 billion dollars by next year. This is because we have created a predictable business environment, we are paying pending bills and we are opening up sectors that were previously closed,” he said.

The PS also cited planned investments by Nigerian billionaire Aliko Dangote, who is expected to establish a major industrial complex in Lamu.

“We already have Dangote in Lamu, him alone he is bringing 17 billion dollars in the country. When you have that kind of investment in manufacturing, petrochemicals and fertiliser, you are talking about thousands of jobs for our youth and a big boost to our exports,” Kiptoo said.

He said the proposed investment would complement the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor and strengthen Kenya’s position as a regional manufacturing and logistics hub.

The planned industrial development is expected to support manufacturing, petrochemical production and fertiliser processing, while creating employment opportunities and expanding the country’s export capacity.

Despite the positive economic outlook, Kiptoo acknowledged concerns over Kenya’s rising public debt and expenditure, warning that the government needed to exercise greater discipline in borrowing.

He said although borrowing had supported infrastructure development over the past decade, the government could no longer rely heavily on debt to finance recurrent expenditure.

“However, expenditure is too much. We should go slow on borrowing since we have borrowed too much. We cannot continue borrowing to finance recurrent expenditure. Borrowing must be for high-impact development that can pay for itself,” he cautioned.

The PS said the National Treasury was pursuing fiscal consolidation measures aimed at reducing wasteful expenditure, rationalising state corporations, digitising revenue collection and expanding the tax base.

He maintained that the government would prioritise improving tax compliance and sealing revenue leakages rather than introducing additional taxes that would increase the financial burden on households.

“We are not going to introduce new taxes that hurt Kenyans. We are going to seal leakages and ensure everyone who should pay tax pays,” Kiptoo said.

Kiptoo assured Kenyans that the government remained committed to reducing the cost of living while sustaining economic growth.

He said the country’s economic performance would ultimately be measured by its ability to create employment opportunities and improve household purchasing power.

The PS identified agriculture, manufacturing, affordable housing and the digital economy as key sectors expected to drive job creation, particularly among young people.

“Growth means nothing if it does not create jobs. That is why we are focusing on agriculture, manufacturing, housing and the digital economy sectors that absorb our youth,” he emphasised.

Kiptoo’s remarks come amid ongoing discussions about Kenya’s economic outlook, public debt sustainability, the cost of living and the government’s efforts to attract investment while maintaining fiscal discipline.