Government Unveils Comprehensive Economic Strategies to Strengthen Kenya’s Fiscal Health and Well-being

 By James Mutua 

Government Spokesperson Dr. Isaac Mwaura Updates on Economic Plans, Tax Reforms, and Social Initiatives. Picture : Courtesy 

Government Spokesperson Dr. Isaac Mwaura has today provided an update on Kenya's economic status, outlining key strategies aimed at strengthening the country’s fiscal position and improving the well-being of its citizens.

For the past two years, the Government has been actively implementing the Bottom-Up Economic Transformation Agenda (BETA PLAN), which prioritizes job creation, equitable income distribution, and long-term economic stability. “Our commitment is to build an economic environment where all Kenyans can thrive,” said Mwaura, emphasizing the importance of sound fiscal policies that support sustainable growth.

A core component of the BETA PLAN is managing Kenya’s growing public debt. Mwaura highlighted that the Government is focused on reducing reliance on foreign debt by increasing domestic revenue generation, ensuring fiscal stability for future generations.

Tax Reforms for Sustainable Growth

A significant portion of today’s briefing focused on the Government’s proposed tax reforms aimed at creating a fairer, more equitable tax system to foster sustainable growth and improve the quality of life for Kenyans.

Mwaura explained that the Government is implementing changes to address fiscal demands and enhance tax compliance. Notable reforms include provisions for tax amnesty where justified, to encourage compliance and fairness, as well as measures to reduce tax expenditures that could drain public revenue, freeing up more resources for essential services.

A key element of the reform is expanding the tax base to include the growing digital economy. New laws will ensure that services like ride-hailing, food delivery, freelance work, and other digital platforms contribute fairly to the tax system. Mwaura also announced the introduction of a Significant Economic Presence Tax, aimed at foreign digital businesses operating in Kenya, ensuring that these companies contribute fairly to the local tax system and aligning Kenya’s tax policies with global standards.

These reforms also aim to benefit Kenyan workers and businesses. Employees will see increases in non-taxable allowances such as meals, non-cash benefits, and gratuities, which will directly boost disposable income. Additionally, enhanced deductions for pension or retirement contributions will incentivize savings. Contributions to the Social Health Insurance Fund and Affordable Housing schemes will also be deductible, further improving workers' financial well-being while supporting broader government social goals.

Mwaura also emphasized measures to foster a competitive business environment, including amendments to the Investment Promotion Act. These changes will streamline foreign investment registration, enhancing Kenya’s appeal as a global investment destination. Furthermore, the Public Procurement and Asset Disposal Act now mandates that at least 40% of government-procured goods and services be sourced from local manufacturers, promoting local industries and job creation.

Reducing National Debt and Strengthening Economic Resilience

Mwaura highlighted progress in reducing Kenya's national debt, which now stands at 68% of GDP, down from 73%. Through effective tax reforms and increased local revenue generation, the Government aims to further reduce reliance on foreign borrowing and enhance Kenya's economic resilience.

In support of this strategy, the International Monetary Fund (IMF) recently extended a Ksh. 78 billion facility under the Extended Credit Facility (ECF) to Kenya. Mwaura emphasized that the IMF’s backing underscores international confidence in Kenya’s economic trajectory and the Government’s prudent fiscal policies.

Social Health Authority (SHA) Progress

A key achievement outlined in the briefing was the restructuring of the Social Health Authority (SHA), which took over from the National Hospital Insurance Fund (NHIF). Mwaura shared that over 14 million Kenyans are now enrolled under the new health scheme, receiving quality medical care at no out-of-pocket cost. Notable advancements include the provision of free treatment for chronic conditions like cancer, diabetes, and kidney disease, reducing financial burdens on patients.

Mwaura encouraged private healthcare providers to join the SHA initiative to ensure broader access to essential healthcare, particularly in counties with overwhelmed public hospitals.

Support for Agriculture and Farmers

Agriculture remains a vital part of Kenya’s economic agenda. To support farmers, especially in maize production, the Government has set a favorable maize price of Ksh. 3,500 per 90 kg bag. This measure aims to stabilize the maize market and ensure fair compensation for farmers. Mwaura noted that this intervention follows recent declines in maize prices to as low as Ksh. 2,500 per bag and is a direct result of the success of the fertilizer subsidy program, which has boosted crop production.

The National Cereals and Produce Board (NCPB) has been directed to open depots nationwide, allowing farmers to sell their maize at the new price. Mwaura shared the example of Joyce Jebet, a local farmer who expressed optimism about the Government’s intervention, stating that the price stabilization and NCPB depots offer hope to farmers facing market volatility. This initiative demonstrates the Government's commitment to supporting farmers’ livelihoods and ensuring food security

Comments

Post a Comment

Popular posts from this blog

HRMPEB Certifies Record 1,130 New HR Professionals, Marking a Defining Moment for Kenya’s Workforce

Image
Reporting by Jameson Mutua  Nairobi, October 24, 2025 — Kenya’s Human Resource profession reached a historic milestone on Friday as the Human Resource Management Professionals Examination Board (HRMPEB) certified its largest cohort to date, 1,130 new Certified Human Resource Professionals (CHRPs). The landmark event, held at Jamhuri Park along Ngong Road, was not only a celebration of academic achievement but also a powerful testament to dedication, resilience, and professional excellence. Speaking during the ceremony, officials emphasized that the certification marks more than just numbers; it symbolizes the growth of a profession that sits at the heart of organizational transformation. Each newly certified professional, they noted, represents countless hours of study, personal sacrifice, and an unwavering commitment to advancing people management in Kenya. This year’s cohort represents a significant increase from 708 graduates in 2024, underscoring the rising confidence in the CH...
Read more

What President William Samoei Ruto said was not reckless. It was responsible. It was lawful. It was necessary

Image
  When the President said police should shoot in the leg, rush the terrorism suspect to hospital, then take them to court — he was not calling for extra-judicial killings. He was simply restating what the law already provides. Section 61 of the National Police Service Act gives officers the power to use reasonable and proportional force — including their firearms — to protect life and property. Those guns, bought with our taxes, are not ceremonial ornaments. They are tools of law enforcement — and when life, public safety or national stability is under threat, the police must not hesitate to use them appropriately. If a terrorist tries to burn down a police station or a looter attempts to torch a market or hospital — the police have a duty to act swiftly, firmly and lawfully. To disable, not to execute. To preserve life, not take it. But also, to protect innocent citizens, not watch helplessly. When a bullet departs the barrel of a gun, death , even though unintended, is one of the...
Read more

Journalists Assaulted During Chaotic DCP Party Launch in Nairobi

Image
  By East Africa Times Reporter   What was meant to be a political milestone quickly descended into disgrace and violence on Thursday, as the launch of the Democracy for Citizens Party (DCP) in Nairobi turned chaotic and hostile, leaving at least two journalists assaulted and media equipment destroyed. Held along Musa Gitau Road, the event was marred by disorder, poor planning, and total disregard for safety and press freedom. Eyewitnesses say the violence broke out when unidentified individuals forced their way into the venue, leading to a stampede-like situation. Hired private security and bouncers retreated by firing gunshots in the air to control the goons. In the mayhem, the bouncers turned their aggression toward journalists, physically attacking them and forcing them to delete footage documenting the chaos. Two major media houses reportedly suffered equipment damage, further highlighting the reckless and lawless nature of the gathering. Shockingly, there was no police p...
Read more