Treasury and Economic Planning Cabinet Secretary John Mbadi has voiced concerns over Kenya’s economic challenges but remains hopeful about the country’s recovery.
Speaking at the graduation ceremony at Migori Teachers Training College, Mbadi acknowledged that Kenya’s economic trajectory has been adversely affected by years of reckless borrowing and poor fiscal management.
Despite these setbacks, Mbadi believes that Kenya can recover through strategic reforms and responsible financial oversight. He specifically pointed to the misuse of short-term loans to fund long-term projects as a key mistake that has contributed to the country’s current financial struggles.
“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 explained. He elaborated that many of the loans, some with terms of three, five, seven, and ten years, must be repaid with interest, but the benefits of these projects will only be realized decades later.
While Mbadi acknowledged that restoring Kenya’s economy will take time, he expressed his commitment to making the necessary changes. He is optimistic that, with the right policies and national support, Kenya can regain financial stability.
Mbadi revealed that his first budget for the 2025/2026 financial year will focus on ensuring long-term sustainability and fairness across all regions.
“This will be my first budget, and I will be fair to the whole country,” he said, urging Members of Parliament to support rather than hinder his efforts for economic recovery.
Mbadi assured Kenyans that the Kenya Kwanza government would quickly address the nation’s challenges, turn things around, and guide the country back to prosperity.
Kenya’s public debt currently stands at about Sh10 trillion, with nearly two-thirds of the country’s annual revenue going toward servicing both domestic and external loans, limiting investments in development and social services.
