Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1590935,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590935/?format=api",
    "text_counter": 150,
    "type": "speech",
    "speaker_name": "Hon. John Mbadi",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "In 2024, the economy grew by 4.7 per cent supported by positive growths in all sectors except construction and mining. This growth was lower compared to 5.7 per cent in 2023 mainly due to adverse effects of floods in the second quarter and the anti-Finance Bill protests in the third Quarter of 2024 that disrupted economic activities. In fact, our economy closed down for about three months. Hon. Speaker, the Government’s policy interventions have strengthened the macroeconomic indicators as reflected in the following achievements: 1. First, inflation rate has declined to 3.8 per cent in May 2025 from a peak of 9.6 per cent in October 2022. The prices of essential food items including sugar, milk, maize flour, wheat flour, bread and rice, among others, have eased. For example, the price of 2 kilograms of sifted maize flour has declined to Ksh156.9 in May 2025 from Ksh177.7 in October 2022. Similarly, cost of energy and power has come down over the same period. 2. Second, in response to the decline in inflation, the Central Bank of Kenya has gradually eased monetary policy, lowering the Central Bank Rate from 13 per cent in August 2024 to 9.75 per cent in June 2025. With the easing of monetary policy stance, interest rates have been declining. For example, the 91-day Treasury Bills rates have declined from an average of 15.9 per cent in May 2024 to 8.3 per cent by May 2025. In addition, the average commercial bank lending rates that peaked at 17.2 per cent in November 2024 have since declined to 15.7 per cent in April 2025 and are expected to decline further. This decline has not only reduced the cost on government debt but is also expected to stimulate lending by banks to the private sector and support economic activity. 3. Thirdky, foreign exchange market has remained stable supported by a narrowing in the current account deficit and improved investor sentiment and confidence in the economy. The current account deficit narrowed to an all-time low at 1.3 per cent of GDP in 2024 from 2.5 per cent of GDP in 2023 supported by exports of goods, resilient tourism and remittance inflows and a contraction in food imports. As a result, foreign exchange reserves have increased to their highest levels and stood at US Dollar 10.5 billion, which is equivalent to 4.7 months of import cover, by 30th May 2025 and continue to provide adequate cover and a buffer against any short-term shocks in the foreign exchange market. The exchange rate against the US Dollar has appreciated from Ksh159.7 to the Dollar in January 2024, to stabilise at Ksh129.3 by 30th May 2025. Hon. Speaker, the economy is expected to sustain growth momentum in 2025 and 2026 with growth projected at 5.3 per cent per year. This growth outlook is premised on a stable macroeconomic environment over the medium-term. To foster macroeconomic stability, the The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}