President Ruto's 1 hour, 37-page, 6,882-word State of the Nation address

President William Ruto on Thursday delivered a sweeping State of the Nation address outlining what he described as significant economic recovery, major sectoral reforms, and an ambitious new roadmap to transform Kenya into a developed nation within a generation.

Speaking during a joint sitting of the National Assembly and Senate, the President said the government had stabilised an economy that was in “severe distress” when he took office, while laying the groundwork for long-term national transformation.

“At a time like this in 2022, Kenya was in distress. Inflation had soared almost to double digits. A fuel shortage threatened to paralyse our economy as oil marketers struggled to access dollars,” he said in the 6,882-word, 37-page speech that lasted 1 hour and 14 minutes.

He added that the shilling “was in free fall,” foreign reserves had hit “historic lows,” and debt service was consuming “more than half of all our revenues.”

According to the President, his administration moved swiftly to restore fiscal order: “We restored fiscal discipline. We eliminated wasteful subsidies. We rationalised public expenditure. We strengthened revenue collection and placed our economy on a path of recovery and sustainability.”

Ruto reported that inflation had dropped from 9.6% in 2022 to 4.6% last month, while the shilling had “stabilised at Ksh.129 to the dollar for nearly two years.”

He further cited the successful Eurobond repayment and rising foreign reserves, saying they signalled renewed global confidence.

“Three years ago, Kenya ranked as the 8th-largest economy in Africa, with a GDP of $115 billion. Today, our GDP has increased to $136 billion… moving us up to become the 6th largest economy on the continent,” he said.

He added that foreign reserves had surpassed $12 billion, the highest in Kenya’s history, and highlighted an upgrade in Kenya’s sovereign credit rating: “Standard & Poor’s has upgraded Kenya’s sovereign credit rating from ‘B-’ to a firm ‘B’; our first upward revision in years.”

The President also pointed to stronger capital markets and investment flows, noting that foreign direct investment had tripled to $1.5 billion and that “over 300,000 new businesses – including 500 foreign companies – have registered and set up shop in Kenya.”

He said the Nairobi Securities Exchange had seen investor wealth grow by more than Ksh.1 trillion this year, calling it “one of the best-performing emerging markets globally.”

Ruto dismissed criticism of his administration’s economic policies, saying opponents were distorting facts.

“Our critics; the high priests of eternal pessimism… will want you to believe that our economy is going in the wrong direction,” he said.

“But while anyone may speak their mind… no one is entitled to manufacture self-serving falsehoods and traffic them as facts. And facts are exactly what I present today; clear, verifiable, and indisputable.”

Agriculture: Fertiliser subsidies, bigger harvests, and sector reforms

The President said reforms in the agricultural sector had brought down the cost of food and boosted national production, attributing this to digital farmer registration and large-scale input support.

“In 2022, fewer than 300,000 farmers were on record. Today, over 7.1 million farmers are registered,” he said.

He reported that 21 million bags of subsidised fertiliser had been distributed so far, saving farmers Ksh.105 billion. As a result, maize harvests had risen from 44 million bags in 2022 to 67 million in 2024, with a projected 70 million bags this year.

“The price of a 2kg packet of flour has fallen from Ksh.250 in 2022 to as low as Ksh.130 today,” he said.

Ruto listed gains across tea, coffee, edible oils, cotton, sugar, cashew nuts, coconuts, dairy, and livestock, saying: “The outcome of these reforms is unmistakable: We have enhanced food security, raised farmer incomes, driven agro-industrialisation, and expanded Kenya’s export footprint.”

The President said Kenya had undertaken “the most ambitious transformation of our health system since independence,” with the rollout of the Social Health Authority (SHA) as the centrepiece.

“27 million Kenyans are now registered in SHA,” he said, adding that over 10,000 health facilities had enrolled to provide services.

He cited the deployment of 107,000 Community Health Promoters, saying their impact had been “extraordinary” with millions of household visits and widespread screening for hypertension and diabetes.

“When I promised that those unable to pay would be supported… the cynics scoffed. Today we are paying premiums for 2.3 million vulnerable Kenyans,” he said.

Ruto also announced an increase in the Cancer Benefits Package from Ksh.550,000 to Ksh.800,000 effective December 1, 2025.

The President said the education sector had been stabilised after a difficult CBC transition, a teacher shortage, and financial strain in universities.

“We have hired 76,000 teachers, with 24,000 more being brought in by January 2026,” he said, adding that this would total 100,000 new teachers in three years.

He said 23,000 classrooms and 1,600 laboratories had been built or were under construction, while TVET enrolment had risen from 341,000 in 2022 to 718,000.

Ruto said the government was delivering 230,000 affordable houses across the country, with thousands of youth employed under the Nairobi River Regeneration Programme.

“The programme has created over 428,000 jobs,” he said.

He also emphasised gains through the Hustler Fund, which he described as “the largest financial inclusion programme since independence.”

He said over Ksh.80 billion had been lent out, adding: “Seven million once-blacklisted Kenyans have since repaired their credit.”

The President said Kenya had expanded fibre by 24,000 km, established nearly 1,500 public Wi-Fi hotspots, and moved from 400 to 22,500 digital public services.

He highlighted youth programmes including NYOTA, which aims to uplift 820,000 young people through training, apprenticeships, and enterprise support.

Ruto unveiled four major national priorities aimed at transforming Kenya into a developed economy.

These include; investing in people, science, and innovation; expanding irrigation through 50 mega dams and 200 smaller dams; growing power generation by 10,000 MW in 7 years; modernising transport and logistics, including dualling major highways and extending the SGR from Naivasha to Kisumu and later Malaba.

“We can no longer allow the clouds to determine whether our people eat or not,” he said, arguing that irrigation was essential for food security and exports.

On roads, he announced immediate works on the Rironi–Naivasha–Nakuru–Mau Summit road and major dualling projects nationwide.

Financing the plan: National Infrastructure Fund and Sovereign Wealth Fund

The President said the ambitious programme would require at least Ksh.5 trillion but insisted Kenya would not return to heavy borrowing.

He said the government would establish a National Infrastructure Fund to mobilise private capital and ring-fence privatisation proceeds.

“For every shilling invested… we aim to attract ten shillings from long-term investors,” he said.

He also announced a Sovereign Wealth Fund to manage natural resource revenues and support future generations, saying: “We cannot repeat the mistake made with titanium at the Coast.”

Ruto said Kenya must now pursue a higher national ambition, comparing the moment to historic decisions taken by countries that industrialised rapidly.

“Let history record that this generation refused to be timid. This is our moment to rise,” he said.