Kenya’s economy stable under Ruto, says Treasury CS Mbadi in response to Gachagua's claims

Treasury Cabinet Secretary John Mbadi has dismissed claims by former Deputy President Rigathi Gachagua that Kenya is facing a deepening economic crisis, accusing him of spreading misinformation about public debt and cash flow challenges.

Speaking at a fundraiser at Mikuyu Primary School in Suba South, Mbadi defended his record, saying the economy has stabilised and grown stronger under his leadership and President William Ruto’s administration.

“Claims that the government is underperforming are mere distractions aimed at diverting attention from our successes,” he said.

Finance Bill protests

Mbadi, who took over as Treasury boss in August 2024 following the dismissal of several Cabinet Secretaries in the wake of the Finance Bill protests, said the economy has made “notable progress” since his appointment.

The protests had been sparked by tax hikes, the rising cost of living, and growing concerns over a weakening economy.

Responding indirectly to Gachagua—who recently claimed during a speech in the United States that Kenya is grappling with unsustainable debt, shrinking cash flow, and a growing backlog of unpaid bills—Mbadi dismissed the allegations as “false.”

“There is money circulating in the economy. Reports suggesting otherwise are simply false,” he said.

He cited the timely disbursement of funds to counties as proof of improved fiscal management.

“For the first time, Treasury successfully transferred all county allocations, including arrears from the 2023/2024 financial year, before the end of the fiscal cycle. No governor should claim a lack of funds,” Mbadi said.

He further argued that such timely disbursement had not occurred during the decade-long administration of former President Uhuru Kenyatta.

“Nobody will call a rally to announce that the economy is improving, but that is the reality,” he added.

NG-CDF disbursements

Mbadi also revealed that the National Government Constituencies Development Fund (NG-CDF), including Sh13 billion in arrears, was fully disbursed by June 30.

“We handed over the funds to the NG-CDF Board, which is now transferring them to the respective constituencies,” he said.

Addressing complaints over delayed development projects, Mbadi insisted that Treasury had done its part.

“If your MP is not delivering NG-CDF-funded projects, do not blame the Treasury. The funds have been disbursed,” he said.

Mbadi noted that the development budget absorption rate had reached 94 per cent, describing it as a sign of improved government performance.

On education, he said the Treasury had adopted a structured capitation disbursement plan, with 50 per cent of funds released in January, 30 per cent in May, and the remaining 20 per cent set for the third term.

He also urged Kenyans to register for the newly launched Social Health Authority, saying it would ease the burden of hospital bills.

Mbadi reaffirmed his commitment to working with President Ruto’s administration and called on ODM leaders to support government efforts for the sake of national development.

“We have witnessed notable development in this region since aligning with the government. We want this progress to continue,” he said.

Nyatike MP Tom Odege, who accompanied Mbadi, urged the government to hasten the building of the Sindo-Mbita road, describing it as vital for supporting fishing communities in Migori and Homa Bay.

“We have seen equipment on site, but progress is painfully slow. The contractor must improve delivery,” he said.