'He is a thinker!' Kilifi North MP praises Ruto for 'stabilizing' Kenyan shilling

Speaking on Citizen TV’s Day Break show, the Kilifi North MP cited the Head of State’s Visa-free directive as one of the major contributors to the currency's strengthening, describing the president as “a thinker”.

“We must credit this government for deliberate efforts to ensure it (dollar exchange rate) has come down. There is a guy at the top… he is called William Ruto who runs a government. He is a thinker, he knows how to manage things and things are moving forward, said the MP.

Baya pointed out that as a result of the visa policy change the country has recorded a notable influx of tourists, particularly from Italy. According to the MP, the increase in tourist arrivals has injected foreign currencies into the economy, thereby strengthening the shilling.

“President Ruto introduced visa-free entry into Kenya, many people criticised him but what did that move mean? If you go to the Immigration department today and they show you the data of tourists coming into the country courtesy of this new system, you will be surprised.

“ Today Italy is the leading country. If you go to Watamu in my constituency, all hotels are fully booked up to April. Just because of that move of removing the visa. This means dollars, euros are flowing into the country,” he said.

The MP went further to highlight the government's decision to repurchase part of the Eurobond as a significant contributor to the sudden gaining of the shilling. 

According to Baya, this move sent a positive signal to foreign investors about Kenya's financial stability, leading to increased confidence and investment in the country.

“When the government decided to buy back part of the Eurobond, it gave foreign investors that this country is liquid and therefore they can invest their money in Kenya and therefore there are inflows of cash within the country. That therefore reduces the demand for the dollar,” he said.

Moreover, Baya praised the government's deliberate economic policies and the expertise of advisors at institutions such as the Treasury and the Central Bank of Kenya (CBK). He specifically highlighted the recent decision by the CBK to raise interest rates as a strategic move aimed at stabilizing the economy and curbing inflation.

“Two days ago the CBK raised interest rate, this means you reduce borrowing…  Of course, the market will suffer a little bit but it stabilizes the economy and reduces inflation.  We must credit this government for deliberate efforts to ensure it has come down,”  he said.

The Kenyan shilling recorded a drastic gain on Wednesday to trade at Ksh.155.50 having registered a severe beating of up to Ksh.163.99 earlier this month.