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President Ruto’s State of the Nation address painted a picture of economic recovery and ambitious transformation, but faces scrutiny over the high cost of living and a public debt stock now standing at KSh 11.7 trillion.
In his third State of the Nation address delivered to a joint session of Parliament on Thursday, November 20, 2025, President William Ruto presented a robust defence of his administration's economic record, declaring that Kenya's economy has been stabilised and is on a sustainable growth path. The address, which began at approximately 2:30 PM EAT, highlighted several positive macroeconomic indicators.
President Ruto stated that annual inflation had fallen from a high of 9.6% in 2022 to 4.6% in October 2025. Data from the Kenya National Bureau of Statistics (KNBS) confirms the October inflation rate at 4.6%, but also details rising costs in key household budgets. The KNBS report for October 2025 indicates that the overall price level was 4.6% higher than in October 2024, primarily driven by increases in the cost of food and non-alcoholic beverages (up 8.0%), transport (up 4.8%), and housing and utilities (up 1.9%). For instance, while the price of maize flour saw a slight decrease, the costs of electricity, onions, and cabbages increased, reflecting the persistent cost-of-living pressures cited by critics.
The President also celebrated the stabilisation of the Kenyan shilling, noting it has held at approximately KSh 129 to the US dollar for a significant period. This was corroborated by Central Bank of Kenya (CBK) data, which showed the shilling exchanging at KSh 129.25 per dollar on November 13, 2025. He further announced that Kenya's foreign exchange reserves have more than doubled since 2022, reaching US$12 billion, which the CBK confirms stood at US$12.292 billion as of November 13, 2025, equivalent to 5.4 months of import cover.
However, this positive narrative is set against a backdrop of soaring public debt. A report from the Controller of Budget on November 18, 2025, revealed that Kenya's public debt surged to a record KSh 11.7 trillion in the 2024/25 financial year, an increase of KSh 1.1 trillion from the previous year. Debt servicing is projected to consume over 70% of ordinary revenue, a figure that presents a significant challenge to the country's fiscal stability.
The President provided significant updates on his administration's key initiatives. The Affordable Housing Programme, he announced, has created over 428,000 jobs with 230,000 units currently under construction. This claim, however, contrasts with recent economic data. The 2025 Economic Survey released by KNBS indicated that private employment in the construction sector actually decreased in 2024, and a CBK survey from October 2025 found that no construction firms planned to hire new workers for the remainder of the year, citing high taxes and weak demand.
On healthcare, the transition from the National Health Insurance Fund (NHIF) to the Social Health Authority (SHA) was lauded as a major success. President Ruto reported that 27 million Kenyans are now registered under SHA, a significant increase from the 9 million covered by NHIF. His administration is also covering the premiums for 2.3 million vulnerable households. Furthermore, he announced an increase in the Cancer Benefits Package from KSh 550,000 to KSh 800,000, effective December 1, 2025.
The Hustler Fund was described as the largest financial inclusion program since independence, having disbursed over KSh 80 billion to more than 7 million Kenyans and repaired the credit scores of many previously blacklisted borrowers. This comes amidst parliamentary scrutiny, with a committee on November 19, 2025, raising concerns over unrecovered loans and missing beneficiary records.
The centerpiece of the address was the unveiling of an ambitious KSh 5 trillion, four-point plan aimed at transforming Kenya into a first-world nation. The President urged the country to “choose ambition over fear” and set a new course for development. The four national priorities are:
To finance this, President Ruto announced the creation of a National Infrastructure Fund and a Sovereign Wealth Fund, intended to mobilize private capital and ring-fence proceeds from privatisation, thereby avoiding an increase in public debt.
The address was met with sharp criticism from the opposition, who accused the President of presenting a curated narrative that ignored the harsh realities faced by ordinary Kenyans. In a statement, opposition leaders argued that the speech sidestepped the primary concerns of the populace: the high cost of living, the controversial housing levy, and the grievances of the youth from the June 2024 anti-finance bill protests. They framed the President's economic figures as disconnected from the daily struggles of citizens grappling with high food and energy prices.
