In a major announcement aimed at revitalizing key sectors of the economy, Government Spokesperson Isaac Mwaura has revealed plans to clear a significant KSh 6.8 billion debt owed to the coffee industry. The move is part of broader government efforts to support critical agricultural sectors and strengthen Kenya’s overall economic stability.
Speaking during a press briefing, Mwaura confirmed that KSh 2 billion has already been allocated in the current national budget to initiate the process of settling outstanding debts owed to coffee farmers. The initiative is expected to provide immediate relief to coffee growers, many of whom have faced years of financial strain due to delayed payments and accumulated arrears.
“This allocation marks the beginning of a broader effort to restore confidence in our agricultural value chains,” Mwaura said. “By addressing these debts, the government is not only supporting farmers but also strengthening one of Kenya’s most important export industries, which contributes significantly to national income and rural livelihoods.”
In addition to addressing the coffee sector, the government is also taking steps to settle obligations in the sugar industry. Mwaura noted that KSh 2 billion has been earmarked to address a KSh 10 billion debt burden affecting sugar farmers. The move is intended to stabilize the sector, which has faced numerous challenges, including fluctuating prices, low productivity, and unpaid dues from millers.
“The sugar sector is critical for both food security and industrial development. Settling these debts will ensure that farmers receive the compensation they deserve and that production levels are sustained,” he added.
Beyond agriculture, Mwaura emphasized the government’s commitment to expanding Kenya’s energy infrastructure. He highlighted plans to increase the country’s installed power capacity from the current 3,271 megawatts to at least 10,000 megawatts within the next five years. This ambitious target forms part of the country’s strategy to diversify its energy sources and meet growing domestic and industrial demand.
A significant component of this expansion involves the development of nuclear power plants in Kilifi and Siaya counties. Mwaura revealed that the Siaya nuclear project is scheduled to begin in March 2027. He added that the initiative is expected to generate between 5,000 and 12,000 jobs during the construction phase, along with permanent technical positions once the plants are operational.
“The introduction of nuclear energy will not only enhance our electricity generation capacity but also promote technological advancement and job creation in the energy sector,” Mwaura noted.
Turning to the country’s economic performance, Mwaura expressed optimism about Kenya’s outlook, citing measures undertaken by the government to maintain financial stability. He highlighted that inflation has remained relatively low in the first four months of the year, averaging 5.3 percent between March and early April. This, he explained, is a result of disciplined fiscal management, strategic debt handling, and targeted interventions in key sectors.
“Stable inflation has a direct positive impact on households by lowering food and energy costs, while also supporting a stronger Kenyan shilling against the US dollar,” he said.
Mwaura also discussed Kenya’s projected economic growth, indicating that real GDP growth is expected to reach 5.5 percent for the 2025/26 financial year. This projection surpasses the global average, reflecting a strong recovery in the agricultural sector and a robust performance in services and industrial sectors.
“The government remains committed to implementing policies that ensure sustainable growth and improve the quality of life for all Kenyans,” Mwaura affirmed.
Tourism, another key contributor to Kenya’s economy, has shown remarkable growth, according to Mwaura. The sector welcomed 7.9 million visitors last year, representing a 9 percent increase compared to the previous year and surpassing the global average growth of 4 percent. Domestic tourism grew by 5.2 percent, while international arrivals rose by 2.7 percent.
Mwaura attributed this growth to several strategic initiatives, including the introduction of the Electronic Travel Authorisation (ETA) visa-free regime, which has simplified entry procedures for international travelers. Ongoing improvements in Kenya’s tourism offerings, including infrastructure development and enhanced marketing campaigns, have also contributed to the sector’s positive performance.
“The government recognizes the importance of tourism not only as a source of foreign exchange but also as a driver of job creation and cultural promotion. We are committed to creating a favorable environment for both domestic and international visitors,” he said.
Overall, the government’s multi-pronged approach—addressing agricultural debts, expanding energy capacity, and maintaining economic stability—is aimed at creating sustainable growth, empowering citizens, and ensuring that Kenya remains a competitive player in the regional and global economy. As these initiatives take effect, farmers, investors, and everyday Kenyans alike are expected to benefit from the improved financial and structural environment.
Speaking during a press briefing, Mwaura confirmed that KSh 2 billion has already been allocated in the current national budget to initiate the process of settling outstanding debts owed to coffee farmers. The initiative is expected to provide immediate relief to coffee growers, many of whom have faced years of financial strain due to delayed payments and accumulated arrears.
“This allocation marks the beginning of a broader effort to restore confidence in our agricultural value chains,” Mwaura said. “By addressing these debts, the government is not only supporting farmers but also strengthening one of Kenya’s most important export industries, which contributes significantly to national income and rural livelihoods.”
In addition to addressing the coffee sector, the government is also taking steps to settle obligations in the sugar industry. Mwaura noted that KSh 2 billion has been earmarked to address a KSh 10 billion debt burden affecting sugar farmers. The move is intended to stabilize the sector, which has faced numerous challenges, including fluctuating prices, low productivity, and unpaid dues from millers.
“The sugar sector is critical for both food security and industrial development. Settling these debts will ensure that farmers receive the compensation they deserve and that production levels are sustained,” he added.
Beyond agriculture, Mwaura emphasized the government’s commitment to expanding Kenya’s energy infrastructure. He highlighted plans to increase the country’s installed power capacity from the current 3,271 megawatts to at least 10,000 megawatts within the next five years. This ambitious target forms part of the country’s strategy to diversify its energy sources and meet growing domestic and industrial demand.
A significant component of this expansion involves the development of nuclear power plants in Kilifi and Siaya counties. Mwaura revealed that the Siaya nuclear project is scheduled to begin in March 2027. He added that the initiative is expected to generate between 5,000 and 12,000 jobs during the construction phase, along with permanent technical positions once the plants are operational.
“The introduction of nuclear energy will not only enhance our electricity generation capacity but also promote technological advancement and job creation in the energy sector,” Mwaura noted.
Turning to the country’s economic performance, Mwaura expressed optimism about Kenya’s outlook, citing measures undertaken by the government to maintain financial stability. He highlighted that inflation has remained relatively low in the first four months of the year, averaging 5.3 percent between March and early April. This, he explained, is a result of disciplined fiscal management, strategic debt handling, and targeted interventions in key sectors.
“Stable inflation has a direct positive impact on households by lowering food and energy costs, while also supporting a stronger Kenyan shilling against the US dollar,” he said.
Mwaura also discussed Kenya’s projected economic growth, indicating that real GDP growth is expected to reach 5.5 percent for the 2025/26 financial year. This projection surpasses the global average, reflecting a strong recovery in the agricultural sector and a robust performance in services and industrial sectors.
“The government remains committed to implementing policies that ensure sustainable growth and improve the quality of life for all Kenyans,” Mwaura affirmed.
Tourism, another key contributor to Kenya’s economy, has shown remarkable growth, according to Mwaura. The sector welcomed 7.9 million visitors last year, representing a 9 percent increase compared to the previous year and surpassing the global average growth of 4 percent. Domestic tourism grew by 5.2 percent, while international arrivals rose by 2.7 percent.
Mwaura attributed this growth to several strategic initiatives, including the introduction of the Electronic Travel Authorisation (ETA) visa-free regime, which has simplified entry procedures for international travelers. Ongoing improvements in Kenya’s tourism offerings, including infrastructure development and enhanced marketing campaigns, have also contributed to the sector’s positive performance.
“The government recognizes the importance of tourism not only as a source of foreign exchange but also as a driver of job creation and cultural promotion. We are committed to creating a favorable environment for both domestic and international visitors,” he said.
Overall, the government’s multi-pronged approach—addressing agricultural debts, expanding energy capacity, and maintaining economic stability—is aimed at creating sustainable growth, empowering citizens, and ensuring that Kenya remains a competitive player in the regional and global economy. As these initiatives take effect, farmers, investors, and everyday Kenyans alike are expected to benefit from the improved financial and structural environment.
