President William Ruto faces a challenging 2026 as his 2022 economic promises enter the final implementation phase. The economy is expected to strengthen due to declining inflation and interest rates, but some pledges remain unfulfilled. This poses significant hurdles as he prepares for the 2027 elections.
President William Ruto faces a tough 2026 as he shifts focus to the final phase of implementing his 2022 economic promises, witnessing both successes and setbacks due to resource shortages that have left many pledges unfulfilled.
Overall, Kenya's economy is expected to strengthen in the new year, with businesses showing optimism from anticipated increases in demand that could spur job creation, following drops in commodity prices and interest rates.
Inflation has fallen from 9.6% in October 2022 to 4.5% last month, easing pressure on consumers burdened by high living costs since the Covid-19 pandemic in 2020. The Central Bank of Kenya (CBK) has cut its base rate eight times since last year, from 13% to 9.25% by October 2025. This has encouraged growth in bank lending to businesses.
This economic trajectory prompted the World Bank to revise Kenya's 2025 GDP growth forecast upward from 4.5% to 4.9%.
However, a detailed assessment of the president's promised plans reveals that some are progressing slowly while others miss targets, presenting major challenges as he gears up for next year's general elections.
The pledge to establish 47 industrial parks in every county by June 2025 went unmet. Only 10 counties received full funding by June, with 24 expected to get funds in the current fiscal year.
In the housing sector, the government completed 8,367 houses between September 2022 and December 13, 2025, compared to the annual target of 200,000. The government states that 234,910 houses are in various construction stages, aiming to complete 500,000 by June 2029.
