Nairobi — Kenya's economy is showing firm signs of recovery, with inflation cooling to a 32-month low, a development that Cabinet Secretary for the National Treasury, John Mbadi, hailed as a "turning point" during the tabling of the 2025/2026 Financial Year National budget at the National Assembly on Thursday.
While delivering his first budget speech since his appointment last year as the National Treasury CS, Mbadi announced that the country's annual inflation rate had dropped to 3.8 percent in May 2025, down sharply from a peak of 9.6 percent in October 2022.
"The government policy interventions has strengthened the micro economic indicators: Inflation rates has declined to 3.8 percent in May 2025 from a peak of 9.6 percent in October 2022," he said.
He attributed the decline to sustained fiscal policies, easing global commodity prices, and effective monetary policy interventions.
"The prices of essential food items including sugar, milk, maize flour wheat flour and rice has eased," he revealed.
Additionally CS Mbadi noted that the country's economy is expected to sustain a growth momentum in the 2025/2Fiscal year with growth projected at 5.3 percent per year.
