President William Ruto has set an ambitious goal to lower Kenya’s inflation rate to below 3% in a bid to ease the high cost of living and reduce borrowing expenses.
Speaking at the Banking Industry Inua Biashara SME Exhibition in Nairobi on October 16, Ruto underscored the government’s commitment to economic stability, focusing on predictable exchange rates and creating a favorable climate for investment.
“It is my goal that next year, inflation will drop below 3%. As we bring inflation down and lower the cost of living, we will also stabilize exchange rates, making our economy more predictable,” Ruto stated.
This announcement comes shortly after Kenya recorded its lowest annual inflation rate in nearly 12 years, falling to 3.6% in September due to reduced food and energy prices.
The President expressed optimism that this trend would alleviate financial pressures on Kenyans by lowering daily expenses and enabling more affordable loan interest rates.
Ruto emphasized that reducing inflation has a direct impact on citizens’ lives, not just economic indicators.
“By cutting inflation and lowering living costs, we ensure Kenyans can meet their basic needs without straining their budgets,” he said, adding that this would also help avoid unpredictable price spikes.
Additionally, Ruto noted that stabilizing the exchange rate would attract more investors. “Our strong economic fundamentals are being recognized internationally, which is driving increased investment inflows into Kenya,” he remarked.
