Mbadi Admits Kenya’s Economy Off Track, But Hopes for Recovery
Treasury and Economic Planning Cabinet Secretary John Mbadi has acknowledged that Kenya’s economy is not on the right trajectory but remained confident that recovery is possible. Speaking at the graduation ceremony of Migori Teachers Training College, Mbadi cited poor borrowing practices by previous administrations as a key contributor to the nation’s economic woes.
“It is true that our economy is not doing very well. It is largely because at one time we took short-term loans to develop long-term projects,” Mbadi admitted. However, he assured Kenyans of his commitment to fixing the situation through structural reforms and responsible financial planning.
The Cabinet Secretary emphasized that recovery would not be immediate but expressed hope that his first national budget, for the 2025/2026 financial year, will set the country on a more sustainable path. “This will be my first budget, I will be fair to the whole country,” he said, urging Parliament not to sabotage his plans.
Migori Governor Ochilo Ayacko and Nyatike MP Tom Odege echoed his sentiments and called on the Treasury to allocate more funds for the employment and remuneration of teachers. Ayacko decried the long wait for promotions and the low pay that Kenyan educators endure, warning that it could lead to lower morale and reduced productivity.
Mbadi’s remarks come just weeks after he warned of Kenya’s bleak fiscal outlook, noting that the country must reduce its dependence on external aid. With domestic and foreign borrowing at an all-time high—totaling approximately Ksh.10 trillion—two-thirds of Kenya’s annual revenue is currently used to service debt.
“We will be left to look inward, and this is the worst period for Kenya. Some time back, we decided to take loans as a country, and these loans have now reached their peak,” Mbadi said in a recent statement.
Despite the challenges, the CS remains hopeful that with collective effort, policy reforms, and prudent spending, Kenya can begin to rebuild a stronger economic foundation.
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Mbadi Admits Kenya’s Economy Off Track, But Hopes for Recovery