Treasury and Economic Planning Cabinet Secretary John Mbadi has acknowledged that Kenya’s economy is not on a sustainable path, attributing the crisis to previous over-reliance on short-term loans for long-term development projects.
Speaking during a graduation ceremony at Migori Teachers Training College, Mbadi painted a sobering picture of the country’s fiscal health—but remained confident in a turnaround.
“It is true that our economy is not doing very well. It is largely because at one time we took short-term loans to develop long-term projects,” he said. With Kenya grappling with nearly Ksh.10 trillion in debt and two-thirds of annual revenue consumed by debt repayments, the Cabinet Secretary said the country must now “look inward.”
While he warned that economic restoration will take time, Mbadi assured Kenyans that his first national budget—set for the 2025/2026 financial year—will be inclusive and reform-oriented.
“This will be my first budget. I will be fair to the whole country,” he pledged, calling on Members of Parliament to support his economic agenda rather than politicize it.
Migori Governor Ochilo Ayacko and Nyatike MP Tom Odege echoed public frustration over neglected sectors, urging Mbadi to prioritize education by improving teacher pay and promotion pathways.
Ayacko cautioned that continued neglect could demoralize educators and impact national productivity.
The CS’s remarks build on his earlier warning issued on March 25, where he cited Kenya’s worsening debt profile and stressed the need for self-reliance.
With high expectations for his debut budget, Mbadi now faces the uphill task of balancing fiscal discipline with social and economic stimulus.
