President William Ruto has set an ambitious goal to bring Kenya’s inflation rate below 3% as part of his government’s efforts to reduce the high cost of living and ease borrowing costs. Speaking at the Banking Industry Inua Biashara SME Exhibition in Nairobi on October 16, Ruto outlined the administration’s focus on economic stability, emphasizing the importance of predictable exchange rates and a favorable investment climate.
“It is my goal that next year, inflation will drop below 3%,” the President stated. “As we bring inflation down and lower the cost of living, we will also stabilize exchange rates, making our economy more predictable.”
This announcement follows Kenya’s significant progress in managing inflation, with the country’s annual inflation rate hitting a 12-year low of 3.6% in September. The drop was largely attributed to lower food and energy prices. The President expressed optimism that this trend would continue, providing relief to Kenyan households and businesses by easing daily expenses and making loans more affordable.
“By cutting inflation and lowering living costs, we ensure Kenyans can meet their basic needs without straining their budgets,” Ruto explained. He further highlighted the broader impact of reducing inflation, noting that it would help avoid unpredictable price spikes that often disrupt household finances.
President Ruto also emphasized that stabilizing the exchange rate was key to attracting more investment into the country. “Our strong economic fundamentals are being recognized internationally, which is driving increased investment inflows into Kenya,” he said.
