PS Kiptoo says Kenya’s economy stabilised in 2025 as inflation eased
By Cy Muganda, January 6, 2026Treasury Principal Secretary Chris Kiptoo has declared that Kenya’s economy remained on a stable and improving path in 2025, with lower inflation easing pressure on households through reduced commodity prices.
In a statement posted on his X account on Tuesday, January 6, 2026, PS Kiptoo highlighted the progress made in economic stabilisation while acknowledging that more work remains to improve Kenyans’ income levels.
“In 2025, Kenya’s economy remained on a stable and improving path. Lower inflation eased pressure on households through reduced commodity prices compared to 2023, even as we continue working to further lower the cost of living and strengthen incomes,” he wrote.
Income improvement aspirations
Kiptoo emphasised the government’s ambition to significantly improve Kenyans’ per capita income, disclosing that Kenya’s push to become a high-income economy was anchored on increasing per capita income.
“We think that more could be done to improve the income levels of Kenyans. And that’s the aspiration. When you hear we want to up our ambition to be a first-world country, what are we saying? We’re talking about per capita income,” Kiptoo said.
He explained that Kenya’s current per capita income stands at around $2,000, based on a GDP of $140 billion, but noted that reaching first-world status would require substantial improvements.
“When we talk about per capita income for Kenya now at 140 billion dollars, you’re talking about 2,000 maybe dollars. But you know, other countries like Singapore and others, you’re talking about over 50,000 dollars per year per capita income. So to reach there means there’s a lot that we have to do,” he stated.
Strong export performance
Kiptoo further pointed to strong export performance as evidence of economic improvement in 2025, highlighting growth in both goods and services exports.
“The economy has done well, and you can see exports of goods have performed well. You will see we have had foreign exchange inflows from coffee, tea and other commodities that we sell,” he said.
The Treasury PS added that services exports, especially tourism, had also recorded positive growth, contributing to increased foreign exchange earnings.
“Our export receipts from services have also done well, particularly from tourism and other services. You can see that there has been a growth in revenue in foreign exchange,” he stated.
According to Kiptoo, remittances from Kenyans living abroad rose by six per cent over the past year, providing an additional boost to the economy.
“More importantly, we have had a six per cent increase in remittances over the last one year, for instance,” he said.