Treasury PS Chris Kiptoo outlined Kenya’s growth ambitions during remarks in Kilgoris.
Treasury PS Chris Kiptoo says stronger investment can lift growth beyond 5 per cent, but warns against borrowing to fund recurrent spending.
Kenya economic growth could reach double digits as investment rises and macroeconomic conditions improve, Treasury Principal Secretary Chris Kiptoo says. He cited the current expansion of about 5 per cent as a foundation for faster growth.
Speaking at Osinani Catholic Church in Kilgoris, Transmara West, Kiptoo said Kenya had remained resilient despite global economic uncertainty. He compared its performance with several African economies growing at between 2 and 3 per cent.
However, the PS also warned that excessive expenditure and borrowing required greater fiscal discipline. He said economic progress must ultimately deliver jobs and stronger household purchasing power.
Investment to drive Kenya economic growth
Kiptoo attributed the economic performance to government efforts to contain inflation and strengthen the shilling. These measures, he argued, had also improved stability and restored investor confidence.
Foreign direct investment had reached $3.2 billion, compared with about $1.5 billion in 2021, he said. The government aims to raise that figure to $10 billion by 2027.
To support that target, Kiptoo said the government was improving the business environment and settling pending bills. It was also opening sectors that previously restricted investment.
Meanwhile, he cited Nigerian billionaire Aliko Dangote’s proposed industrial complex in Lamu as a major prospective investment. Kiptoo put its value at $17 billion and said it would support manufacturing, petrochemicals and fertiliser processing.
He said the development would complement the Lamu Port-South Sudan-Ethiopia Transport Corridor, known as LAPSSET. In addition, he linked the project to thousands of jobs, increased exports and Kenya’s ambitions as a manufacturing and logistics hub.
Treasury seeks spending restraint and better tax compliance
Despite that outlook, Kiptoo acknowledged concerns about rising public debt and government expenditure. While borrowing had supported infrastructure over the past decade, he said Kenya should reduce its reliance on debt.
In particular, he warned against borrowing to finance recurrent spending. Instead, loans should fund high-impact development projects capable of generating returns to cover their costs.
Kiptoo said Treasury was pursuing spending cuts, changes to state corporations and digital revenue collection. It also aimed to widen the tax base while reducing waste.
On taxation, he said the government would prioritise compliance and closing revenue leakages over new taxes that burden households. He also reiterated its commitment to lowering living costs while sustaining growth.
Ultimately, Kiptoo said job creation would determine whether economic gains improved people’s lives. He identified agriculture, manufacturing, affordable housing and the digital economy as priority sectors for youth employment.
