Treasury Cabinet Secretary John Mbadi has acknowledged that Kenya’s economy is struggling, citing the heavy debt burden from past administrations as a major contributor to the current fiscal challenges.
Mbadi revealed that short-term loans—some maturing within 3, 5, 7, or 10 years—were taken to finance long-term development projects whose benefits, he said, may only be realized three decades from now. This mismatch, he explained, is at the core of Kenya’s ongoing economic woes.
“The loans… we have to pay with interest, but the results of the projects will start being seen after 30 years. That is the struggle,” Mbadi noted.
His remarks come in stark contrast to the optimistic tone adopted by President William Ruto, who has consistently maintained that Kenya’s economy is on the rebound. Ruto has painted a picture of progress and stability, largely credited to his bottom-up economic agenda.
However, Mbadi’s statements hint at a deeper economic reality marked by high debt servicing costs, ballooning recurrent expenditure, and sluggish revenue collection.
Despite the grim admission, Mbadi called on Kenyans to remain hopeful, emphasizing that his team is actively crafting strategies to stabilize and eventually grow the economy. He also expressed optimism that his first national budget for the 2025/2026 financial year will be transformative and balanced across all regions.
“Even when I tell you about the difficulties and stress of paying debts, it is not to scare you… With your cooperation and patience, we will turn this around,” Mbadi said, urging MPs to support his budget plans.
