The Cabinet Secretary for National Treasury and Economic Planning John Mbadi dismissed rumours that the strength of the Kenyan shilling is artificial, trashing the argument by the international lenders such as IMF.
Speaking during a meeting with the Swedish Ambassador to Kenya, Mr. Håkan Åkesson, at his office located in Treasury Building, Mbadi stated that the stability of the shilling reflects prudent macroeconomic management and the increasing confidence of investors in Kenya’s economic trajectory.
The CS attributed the sustained stability of the currency to the robust economic fundamentals of the country adding that the shilling could strengthen to about KSh118 against the US dollar if left to trade freely.
He revealed that the strength of the currency is supported by an 8 percent surge in diaspora remittances, improved export earnings, and recent reforms allowing the procurement of fuel without exclusive dependence on the U.S. dollar through a Government-to-Government (G to G) arrangement. This development has alleviated pressure on foreign exchange.
The Cabinet Secretary noted that Kenya’s economy continues to grow at a commendable rate of approximately 5 percent, with the government aiming for a 7 percent growth path to boost job creation and expand opportunities.
He attributed this upward momentum to strong performances in key sectors, which are pivotal in driving the country’s economic transformation agenda.
Mbadi extended an invitation to Swedish investors to capitalize on Kenya’s expanding market, highlighting opportunities in manufacturing, green energy, and value addition for export-oriented industries.
Furthermore, he emphasized that increased Swedish investment would not only stimulate job creation and facilitate technological transfer but also strengthen trade relations between the two nations, aligning with Kenya’s Bottom-Up Economic Transformation Agenda (BETA).
Ambassador Åkesson commended Kenya’s economic progress and reiterated Sweden’s commitment to enhancing bilateral cooperation. The meeting underscored the enduring partnership between Kenya and Sweden, emphasizing their shared dedication to advancing collaboration.
The CS conveyed a message of confidence in Kenya’s economic outlook and invited global investors to partake in the country’s growth story.