President Ruto defends his 2023 development record, says he stopped Gov’t extravagance

President William Ruto says his administration has made significant strides in moving the nation forward by beating the threat of economic stagnation.

The Head of State said the country is in a secure space with regard to debt obligations, and aims to attain its full socio-economic potential.

The President's remarks sharply contradict the views and findings of sector players in the economy that insist the country is on the wrong economic trajectory.

Ruto, who gave a New Year’s address in Nakuru County, spoke of gains made by his administration in moving the country foward and resolving its problems.

He said the affordable housing project which has encountered legal challenges has achieved a lot, and pointed out the number of jobs his administration claims it has added to the country.

“For the first time, my mama mboga and boda boda friends will now have a chance to own a home in our Ksh.4,000-a-month 3% interest rate tenant purchase scheme,” he said.

“Our housing program not only provides decent home ownership for millions, including slum-dwellers who now live in squalor, but it also aims to reverse agricultural land fragmentation and has already created 120,000 jobs, with plans to employ an even greater multitude of people next year.”

Late last year, the Federation of Kenya Employers (FKE) announced that 70,000 Kenyans had lost their jobs in the past year, with more firms issuing closure notices as a result of implementation of the Finance Act 2023.

“Corporates are either having to shrink their operations or to contain the numbers, and this is the outcome of a series of events that have happened in our country that have pushed up the cost of doing business. The tax burden has made many shut their doors, the ripple effect is in families who will bear the brunt,” said FKE boss Jacqueline Mugo.

President Ruto defended his administration’s spending, stating that the Executive has cut expenditure by up to Ksh.400 billion to reduce borrowing.

“2023 is the year we decided to stop wastage and extravagance, instead opting to live within our means,” he stated.

This despite the Controller of Budget revealing alleged budgeted corruption and wastefulness on trips by both the Executive and Legislature.

The President announced that tax revenues have increased to Ksh.600 billion to fund government programs and development.

“We certainly cannot be independent if we are enslaved by monumental debt, as has been the case,” he went on.

However, the Commission on Revenue Allocation (CRA), while submitting its report for the financial year 2023/2024 and 2024/2025 before the National Assembly’s Budget and Appropriations Committee, called for a review of the taxation mechanism, warning that both the national and county governments will experience inadequate funding as a result of KRA failing to meet its target.

Lineth Oyugi, Director of Economic Affairs at CRA, said: “All taxes from June 2023 went down, we have missed our revenue quarterly taxes already by about Ksh.70 billion. We need a conversation about the tax level collection.”

The Head of State insisted that his administration has made significant strides by triumphing over the threat of economic stagnation by reducing inflation to 6.8% and with 5.4% GDP growth, making the country the 29th fastest-growing economy globally.

This, he said, enabled the country secure space with regard to sovereignty over debt obligations, aimed at attaining full socio-economic potential.

The President also talked of anticipated improvement in tourism numbers due to Kenya's new Visa-free travel policy for visitors and the country's hosting of high profile international meetings which he says have raised its profile internationally.