Kenya dodged debt default, Ruto says as he hails economic rebound

President William Ruto during a meeting with leaders from Marsabit at State House on June 12, 2026/PCS

President William Ruto on Friday said Kenya has emerged stronger economically after overcoming the risk of a sovereign debt default that had placed it among six African countries considered vulnerable in 2022.

‎Speaking at State House, Nairobi, during a meeting with grassroots leaders from Marsabit County led by Governor Mohamud Mohamed Ali, the President said prudent economic management had helped stabilise the economy and restore investor confidence.

‎Ruto recalled that when he assumed office in September 2022, Kenya was among six African countries that international observers feared could default on their foreign debt obligations.

‎“In 2022, Kenya was among six countries that were expected to default on their foreign financial obligations, but I said that as long as I am President, that would not happen,” Ruto said.

‎“Out of the six countries, five defaulted. Kenya is the only one that did not default.”

‎The President said the economy had since registered notable gains, elevating Kenya to the position of Africa’s sixth-largest economy while strengthening key economic indicators.

‎“Today, we have worked hard. Kenya is now the sixth-largest economy in Africa. We have reduced inflation, stabilised the exchange rate and strengthened our economy,” he said.

‎“The dollar was exchanging at about Sh160. Today it is around Sh129. Our foreign exchange reserves stood at about $5.6 billion; today they are approximately $13 billion.”

‎He added: “Kenya is much more stable today than it was in 2022, and that is the correct position. I told Kenyans that we would organise our economy because if we failed to do so, the country would be headed in the wrong direction.”

‎The President spoke as he outlined a raft of development projects that the national government is implementing in Marsabit County, aimed at unlocking the region’s economic potential through investments in infrastructure, trade, water, energy, and healthcare.

‎Among the flagship projects is the construction of the Marsabit–Segel road at a cost of Sh1.4 billion and the Segel–Maikona road valued at Sh1.8 billion.

‎The government is also opening up security roads in the county at a cost of Sh100 million to improve mobility and enhance access to remote areas.

‎Ruto said an additional Sh2 billion has been set aside for road projects, including the Loglogo-Korr-Kargi, North Horr-Dukana and Sololo-Anona-Golole-Uran road sections.

‎“We are investing heavily in infrastructure because roads are critical in connecting communities, facilitating trade and opening up economic opportunities,” he said.

‎To strengthen cross-border trade, the President revealed that the national government is working with the Marsabit County administration to establish a dry port in Moyale.

‎The facility is expected to enhance trade flows between Kenya and Ethiopia and position the border town as a key logistics and commercial hub in the Horn of Africa.

‎On electricity access, Ruto said the government is investing Sh2.81 billion in last-mile connectivity projects and mini-grids to expand power supply to underserved communities.

‎At the same time, Marsabit has been allocated Sh7 billion for affordable housing projects, construction of modern markets and student accommodation facilities that will host about 1,500 learners.

‎The President also announced plans for the construction of a Level Six referral hospital in the county at a cost of Sh1.3 billion to improve access to specialised healthcare services.

‎Water scarcity, a long-standing challenge in the arid county, is also being addressed through major investments, including the construction of the Badasa Dam and water supply projects in Kalacha, Hurri Hills, Sololo, Korr and Loglogo.

‎Ruto said the projects are intended to transform Marsabit into a thriving agri-business and livestock production hub while improving livelihoods for residents.

‎“We are taking deliberate measures to unlock Marsabit’s immense potential through strategic investments in infrastructure, livestock production, power and water projects,” he said.

‎The President said the government's broader economic agenda is focused on creating stability, attracting investment and ensuring that growth translates into tangible benefits for communities across the country.