Inflation drops as shilling strengthens – PS Chris Kiptoo
By Kiprono Keileb, December 6, 2025Treasury Principal Secretary Chris Kiptoo says Kenya’s financial indicators have shown notable improvements this year, pointing to easing inflation, a firmer shilling, and stable foreign exchange reserves.
His statement came as he attended the 2025 End of Year Public Service Reflection Dinner and the 2026 Agenda Setting Forum in Kisumu on Friday, December 5, 2025.
Kiptoo noted that trends observed across the year have largely remained positive, with several indicators showing steady performance despite a challenging global environment.
“Since the beginning of this year, our economic outlook has remained stable and resilient, underpinned by sound macroeconomic management and coordinated fiscal and monetary policy actions,” Kiptoo said.
He added that inflation had eased in November, crediting stabilising food prices and a calmer exchange rate environment.
“Inflation declined to 4.5 per cent in November, supported by easing food prices and a stable exchange rate,” he said.
Kiptoo also highlighted the performance of the shilling and the country’s external buffers over the same period.
“The Kenyan shilling has remained steady against major international currencies, while foreign exchange reserves remained adequate at USD 12,030 million (5.2 months of import cover) as of 4th December,” he said.
He further noted that financial markets had reflected similar trends of gradual improvement throughout the year.
“Financial markets have also continued to demonstrate positive momentum. These gains align with the President’s long-term vision to transform our country into a global economic powerhouse with thriving industries,” he said.
The Kisumu forum, convened by Chief of Staff and Head of Public Service Felix Koskei, brought together public service leaders to take stock of the year’s achievements and agree on direction for 2026. Kiptoo described the session as a space for reflection and realignment of priorities to strengthen service delivery.
“Attended the 2025 End of Year Public Service Reflection Dinner and the 2026 Agenda Setting Forum at Tom Mboya Labour College in Kisumu, spearheaded by the Office of the Chief of Staff and Head of Public Service, Felix Koskei,” he said.
He added that the gathering helped shape clarity on what needs to be done moving forward.
“The dinner provided a valuable platform to take stock of our collective achievements and to shape clear priorities for impactful public service delivery in the year ahead,” he said.
Kiptoo noted that he was acknowledged among officials contributing to reforms within the public service sector.
“During the occasion, I was recognised among the leadership driving the public service transformation agenda robustly in 2025,” he said.
The Treasury PS said the discussions in Kisumu marked an important step as government departments prepare to roll out the 2026 agenda, with a focus on efficiency and improved public service delivery.