Kenya’s Kwanza government progresses two years later

Upon his election in 2022, President William Ruto pledged to implement a transformational leadership approach under the Grassroots Economic Transformation Agenda, focusing on five key pillars: agriculture, micro, small and medium enterprise economy, affordable housing, universal health coverage, and the digital highway and creative economy.

These sectors were strategically chosen to address deep-rooted economic marginalisation and uplift those at the base of the economic pyramid, especially as many Kenyans prioritised reducing the high cost of living.

Agrarian reform

Recognizing that food prices account for as much as 54 percent of household spending, the government has prioritized agricultural reforms to reduce food production costs, which contribute significantly to high prices and low yields.

A key initiative was the fertilizer subsidy, which reduced fertilizer prices by 58 percent, from 6,000 shillings in 2022 to 2,500 shillings in 2024, saving farmers 3,500 shillings per bag. In addition, fertilizer distribution increased by 514 percent, from 1.4 million bags in 2022 to 8.6 million in 2024, providing an additional 7.2 million bags to increase food production.

These reforms led to a remarkable 38.9% increase in maize production, from 61.74 million 50-kilogram bags in 2022 to 85.7 million in 2023. This increase not only increased farmers’ incomes and created thousands of jobs, but also improved Kenya’s food security, resulting in a 33.7% reduction in maize imports, saving valuable foreign exchange. Remarkably, the price of a 2-kilogram bag of maize flour fell by 23.3%, fulfilling a key promise made to Kenyans.

The government has also expanded reforms in key value chains, including tea, coffee, dairy, edible oils, leather, cotton and rice, which have further increased farmer productivity and incomes.

Strengthening the SME sector

One of the overarching goals of the Kenya Kwanza government was to create jobs for the youth. Recognizing that the SME sector employs about 85 percent of Kenya’s workforce, the government focused on strengthening the sector to drive job creation and alleviate poverty. The goal is to enable SMEs to accommodate the increasing number of young Kenyans entering the workforce each year.

The SME sector has made significant progress between 2022 and 2024. Key achievements include the launch of the Hustler Fund in 2022, which provides affordable credit to SMEs and organised groups. To date, the fund has disbursed 54.9 billion shillings to 22 million individuals and 185.8 million shillings to 673,340 groups and SMEs.

In addition, the government has renovated 21 district industrial development centres to support key value chains and is building 19 district industrial parks to enable small farmers to enjoy economies of scale.

Affordable Housing Initiatives

The estimated demand for new urban housing in Kenya is 250,000 units per year, while only 50,000 are being produced, leaving a cumulative deficit of two million units. More than 60 percent of Kenya’s urban dwellers live in substandard housing, exposing them to health risks.

To address this, the government has committed to building 200,000 affordable homes a year, aiming to provide housing for those at the bottom of the economic pyramid while also creating high-quality jobs.

Between 2022 and 2024, the government achieved a 1,061% increase in the number of social housing units – from 8,872 in 2022 to 103,000 in 2024. The leader in this area is Nairobi with 33,810 units.

The total number of jobs created in the social housing sector increased from 17,774 in 2022 to 140,610 in 2024, providing crucial employment opportunities, especially for young people.

Universal health insurance

The Kwanza Kenyan government is implementing a comprehensive strategy to achieve 100 percent universal health coverage, ensuring that all Kenyans have access to affordable, high-quality health care. The strategy includes reforms to health financing, improving the availability of essential supplies, and expanding health infrastructure.

Key elements of the Universal Health Coverage initiative include the creation of a Social Health Authority to manage health insurance funds. The government has also passed several key laws to support the SHA.

To improve the supply of medicines and medical equipment, the government increased the Kenya Medical Supplies Authority’s stock fill rate from 59 percent in 2022 to 62 percent in 2024, supported by a 500 million shilling recapitalization. The government also invested in expanding the medical workforce, significantly increasing the number of medical school graduates and registered nurses.

Digital Infrastructure Progress

The ICT sector has emerged as a key driver of economic growth in Kenya, achieving a growth rate of 10 percent in 2022. The Kwanza Kenyan government has leveraged the Digital Superhighway to increase revenue collection, create jobs and support other BETA pillars.

Activities under this pillar include expanding universal broadband availability, increasing fiber installation by 111 percent, and deploying 1,490 Wi-Fi hotspots nationwide. The creation of 274 digital hubs has improved access to technology in underserved communities.

Youth employment through the Ajira and Jitume Digital Jobs programmes increased by 409 per cent, and digital literacy training increased by 598 per cent, improving young people’s prospects in the digital economy.

The eCitizen platform has also transformed the way government services are delivered, with the number of services increasing by 5,859 percent and digital revenues increasing by 652 percent, demonstrating the government’s commitment to developing Kenya’s digital infrastructure.

Deputy Chief of Staff for Performance Management and Supply Chain, Executive Office of the President