Prime Cabinet Secretary Musalia Mudavadi announced that Kenya's GDP grew by 5.3 per cent in the first quarter of 2026, up from 4 per cent during the corresponding period in 2025. This growth was cited as one of the key achievements of President William Ruto's administration over the past four years. Mudavadi made the announcement during the second National Development Implementation Committee (NDIC) meeting of 2026.
The Kenyan shilling has remained stable against the US dollar for two years, with foreign exchange reserves hitting Sh1.93 trillion on October 1, 2026, equivalent to 6.1 months of import cover. This stability was highlighted as a significant achievement, demonstrating the country's economic resilience. The stability of the shilling and increased foreign exchange reserves have contributed to investor confidence.
Mudavadi pointed to several notable achievements of President Ruto's administration, including the groundbreaking of the proposed Sh2.2 trillion Dangote East Africa Refinery in Lamu County. This project is described as the largest single investment in Kenya and East Africa. The refinery is expected to have a significant impact on the country's economy and energy sector.
The Nairobi Securities Exchange's market capitalisation has crossed the Sh4 trillion mark for the first time, alongside its reported performance in 2025 and the first half of 2026. This milestone demonstrates the growth and stability of Kenya's capital markets. The Prime Cabinet Secretary attributed this achievement to the government's economic reforms and policies.
Mudavadi emphasized the importance of consolidating development gains, strengthening public institutions, and sustaining economic stability in the remaining months before the August 2027 General Election. He called on government officials to focus on measurable results and institutionalize long-term development programmes. This will ensure that the country's progress is sustained beyond individual administrations.
The government is reviewing its performance under the Bottom-Up Economic Transformation Agenda (BETA), which was launched by President Ruto's administration. Mudavadi stated that the agenda is to renew the social contract with the people of Kenya by demonstrating how the administration has delivered on its BETA. The government aims to demonstrate its commitment to economic transformation and development.
Mudavadi also urged political leaders to respect the independence of the Independent Electoral and Boundaries Commission (IEBC) as preparations for the 2027 elections gather momentum. He reaffirmed the government's commitment to peaceful elections, citing strengthened inter-agency coordination and the Uchaguzi Bila Noma roadmap developed by the National Cohesion and Integration Commission to prevent electoral violence.
Key points
- Kenya's GDP grew to 5.3pc in Q1 2026, up from 4pc in Q1 2025.
- The Kenyan shilling has remained stable against the US dollar for two years.
- The Nairobi Securities Exchange's market capitalisation has crossed the Sh4 trillion mark for the first time.
