President Ruto at 2: From ‘empty coffers’ to skyrocketing public debt

Within two years into his term in office, the economy has proven the heaviest burden for President William Ruto.

The fiscal deficit widened from 6.3% of GDP in 2022 to 7%; in 2023, as revenues underperformed, and interest costs rose; public debt expanded from 66.7% of GDP in 2022 to 70.2% in 2023, driven by increased loans to finance the primary deficit and by exchange rate depreciation.

However, Kenya’s economy grew 5.2% in 2023, up from 4.8% in 2022.

In his economic rebound plan, President Ruto promised to revive the Kenyan economy, improve food production and provide quality infrastructure, education and healthcare services.

Public debt is also on the rise; in December 2022, Kenya's public debt stood at ksh9.1 trillion, a 5 per cent increase from the Ksh8.7 trillion reported by the Central Bank of Kenya when the Ruto administration took over in September 2022.

The total public debt as of the end of January 2024 was Ksh.11.2 trillion, representing 69.7 per cent of GDP.

Recently, Ruto has outlined plans to limit borrowing, increase the government's revenue, and cut spending as a mitigation measure but all these found a stubborn appetite in government.

Two years after assuming office, Kenya's debt has been described as sustainable with a high risk of debt distress according to the IMF.

President Ruto's administration has found itself at loggerheads with the public with mostly its tax policies met with resistance and protests.

The 2023 Finance Bill was opposed by the Azimio La Umoja coalition, with Raila Odinga leading his troops in street battles seeking to have the bill dropped. A defiant Ruto signed it into law.

Then came the Finance Bill 2024 which triggered nationwide protests led by youthful protestors.

The finance bill that was to finance the 2024-25 financial year budget, was taken through a public participation process with nearly all stakeholders opposing the new taxes on various products.

Despite the public rejection, MPs passed the bill worsening an already bad situation on the streets.

The climax of the protests was the storming of parliament by the Gen-Z protestors who wanted to evict MPs from the chambers. Sadly, the lawmakers had just made the final vote a few minutes before protestors broke into Parliament.