Economic gains at risk without anti-corruption action, DP Kindiki warns

Deputy President Kithure Kindiki, reacting to the Central Bank of Kenya’s (CBK) decision to lower its base lending rate by 25 basis points to 9.5%, on Monday, hailed the move as a strong signal that the country is overcoming a decade-long era of high interest rates that had stifled economic growth.

“Kenya has turned the corner of macroeconomic instability that had been occasioned by external and internal shocks,” said DP Kindiki, adding that the country’s economic trajectory is finally aligning with the government’s long-term recovery goals.

The CBK’s latest rate cut — the seventh in the past two years — has brought the benchmark lending rate down from a high of 15.75%.

This reduction comes amid a broader context of encouraging economic data: inflation has remained low, hovering between 3 and 4 percent over the last six months, compared to a peak of 9.6% in 2022.

 At the same time, the Kenyan shilling has remained stable at Ksh.129 to the US dollar for the past year and a half, a significant improvement from recent years' levels of Ksh.165 to the dollar

The country’s import cover is also approaching a six-month high, signaling growing resilience in external trade and reserves.

Further boosting Kenya’s economic profile is new data from the International Monetary Fund (IMF), which places the country as the sixth-largest economy in Africa — up from eighth — having overtaken Ethiopia and Angola.

Deputy President Kindiki described this development as a clear indication of Kenya’s strengthening position both regionally and globally.

However, he was quick to point out that while macroeconomic stability is a critical foundation, the real work lies ahead.

“With the general macroeconomic indicators on a positive trajectory, the hard work ahead involves acceleration of government policies, programmes, and projects that will boost microeconomic indicators such as household incomes, savings, and job creation,” he said.

Even as Kenya enjoys renewed economic momentum, Kindiki offered a stern warning about the enduring threat of corruption, which he said continues to undermine the country’s progress.

“Notwithstanding the steady progress, between us and the Kenya of our dreams is corruption. It muddies our present and steals the future,” he said.

According to DP Kindiki, corruption has deeply infiltrated every arm and level of government — from the Executive, Judiciary, and Legislature, to county governments.

He also pointed to its disturbing presence across society, including in civil service, civil society, academia, and even religious institutions. “It has assumed a worrisome place in the daily lives of citizens, civil servants, civil society, academia, and even the institutions of faith,” he observed.

To combat this, Kindiki called for an unwavering national effort — free from political interference and driven by long-term resolve.

“Just like the war our nation has waged on poverty over the decades, an uncompromising, long-term, and non-political strategy to defeat corruption — especially grand corruption — will elevate Kenya to the first world in a generation,” he said.