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Kenyan News
Home Politics Nairobi Metro

Progress of the Bottom-Up Economic Transformation Agenda

254 by 254
March 12, 2025
in Nairobi Metro, Opinion, Politics
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Progress of the bottom up economic transformation agenda
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The Bottom-Up Economic Transformation Agenda (BETA) 2022-27, also known as The Plan, represents a five-year commitment between the Kenya Kwanza Administration and the people of Kenya. It prioritizes reducing the cost of living, eradicating hunger, creating jobs, expanding the tax revenue base, and improving foreign exchange balance—all aimed at fostering inclusive growth and uplifting low-income earners.

As of March 12, 2025, Kenya Kwanza is at the midpoint of its term, prompting a review of its progress, challenges, and policy effectiveness. Key areas of focus include economic stability, job creation, infrastructure expansion, social welfare, and healthcare reforms.

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Economic Stability and Cost of Living

The government prioritized macroeconomic stability to attract investments and lower living costs. Key achievements include:

  • Fuel cost reduction, significantly lowering production and transport expenses.
  • Foreign exchange stabilization, with the USD/KES exchange rate improving from Sh160.8 (Jan 2024) to Sh129.19 (March 2025), easing import costs.
  • Inflation control, dropping from 9.2% (Sept 2022) to 3.5% (Feb 2025) through fiscal discipline and targeted subsidies.
  • Electricity expansion, increasing generation from 3,076MW to 3,243MW and household connections from 8.9M to 9.85M.
  • Interest rate reduction, with the Central Bank Rate decreasing from 11.25% (Dec 2024) to 10.75% (Feb 2025), encouraging investment.
  • Debt management, lowering the fiscal deficit from 6.2% to 5.2% of GDP, leading to a credit rating upgrade from Moody’s.

Agriculture and Food Security

Agriculture, contributing 50% of GDP and supporting two-thirds of the population, received substantial investment:

  • Fertilizer subsidy, reducing prices by 67%, leading to a 39% increase in maize production (85.7M bags).
  • Lower food prices, with a 2kg maize flour packet dropping from Sh230 (2022) to Sh140 (2025).
  • Livestock and dairy growth, with milk production up 13% and dairy exports surging 92%.

Job Creation and Economic Expansion

The government focused on job creation through digital economy, labour migration, and affordable housing:

  • Ajira & Jitume programmes increased online workers from 41,382 (2022) to 182,568 (2025)—a 323% growth.
  • Labour migration expanded by 1,279%, supported by new bilateral agreements.
  • Housing projects created 188,256 new jobs, with 130,988 units under construction.

Infrastructure Development

Investment in infrastructure has enhanced economic growth and service delivery:

  • Road network expanded by 6,000km between 2022 and 2025.
  • Northern Collector Tunnel completed, increasing Nairobi’s water capacity by 100M cubic meters annually.
  • Air transport upgrade, with 14 airstrips rehabilitated.
  • ICT growth, adding 4,690km of fibre optic cabling and 282 digital hubs.
  • Electricity expansion, connecting 5.8M new households.

Social Welfare and Public Services

The government made significant strides in social programs:

  • Inua Jamii programme expanded, benefiting 1.2M elderly individuals.
  • Support for vulnerable children grew 65%, and assistance for persons with disabilities increased 34%.
  • Women Enterprise Fund loan disbursements rose 92%.

Healthcare Reforms

A major transformation involved replacing NHIF with the State Health Insurance Fund (SHIF), improving healthcare access under Universal Health Coverage (UHC):

  • SHIF membership surged from 8M (2022) to 19.7M (2025).
  • Integrated Health Information Management System (IHIMS) enhanced efficiency.
  • Community Health Promoters Programme expanded, increasing trained health workers.

Education Sector Advancements

  • 76,000 teachers recruited to improve the teacher-student ratio.
  • 16,000 new classrooms built to support Competency-Based Curriculum (CBC).
  • School feeding programme expanded, benefiting 2.6M students.
  • TVET enrolment increased by 42%, strengthening technical skills.
  • Higher education funding boosted through scholarships and loans.

Conclusion

Under President William Ruto’s leadership, Kenya Kwanza has made significant strides in stabilizing the economy, improving infrastructure, boosting food security, and enhancing social welfare. While challenges remain, the mid-term review shows a strong foundation for sustainable development and improved livelihoods for all Kenyans.

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