President William Ruto’s first three years in office have delivered mixed economic results, with slower growth and modest gains in purchasing power compared with his predecessors, according to the latest Economic Survey.
Data from the Kenya National Bureau of Statistics shows that Kenya’s Gross Domestic Product (GDP) expanded by 4.6 per cent in 2025 – the lowest rate in three years and a slowdown from 4.7 per cent in 2024 and 5.7 per cent in his first full year in office.
While the economy has continued to grow, the pace lags behind the early years of former Presidents Mwai Kibaki and Uhuru Kenyatta, particularly Kibaki, whose administration recorded a sharp rise in growth from 2.9 per cent in 2003 to 5.8 per cent by 2005.
The Economic Survey 2026 indicates that maintaining growth momentum has been a key challenge under Dr Ruto, with performance remaining below pre-pandemic highs. In contrast, Mr Kenyatta’s first three years saw fluctuating but relatively stronger growth, ranging between 5.4 per cent and 5.9 per cent.
On the cost of living, real wages- a key measure of purchasing power- have increased slightly under Dr Ruto, rising by 1.7 per cent over three years to an average monthly income of Sh56,566. This translates to an improvement of about Sh959 in workers’ spending power.
“The data indicates real earnings adjusted for current inflation rates,” the KNBS notes.
However, the gains have been uneven. Private sector employees have seen stronger growth in earnings, while public sector workers have experienced a decline in real wages, effectively reducing their purchasing power.
“The private sector experienced a growth of 3.9 per cent, with (annual) earnings rising to Sh716,100. Conversely, the public sector experienced a decline of 2.2 per cent, bringing real average earnings down to Sh600,600 during the same period,” KNBS said in the Economic Survey.
By comparison, Kibaki’s first term delivered the most significant improvement in living standards, with real wages rising by 12.5 per cent between 2003 and 2005. Mr Kenyatta’s early years recorded the weakest growth in real wages, with minimal increases and some losses in purchasing power among government workers.
In absolute terms, Kenya’s economy has grown substantially over time. Nominal GDP stood at Sh17.58 trillion last year, marking a 16.9 per cent increase from 2023 levels. Mr Kenyatta’s administration recorded the highest nominal expansion during its first three years, with GDP reaching Sh6.28 trillion- about 32 per cent higher than at the start of his term.
Job creation under Dr Ruto has also shown mixed trends. The economy generated 822,100 new jobs in 2025, an increase from 782,300 in 2024 but still below the 848,100 jobs created in 2023.
“The total number of new jobs generated in the economy in 2025 was 822,100, reflecting a growth of 4.0 per cent, with 105,300 jobs created in the modern sector,” KNBS stated.
This contrasts with Mr Kenyatta’s first three years, which saw steady year-on-year increases in employment, culminating in a significantly higher number of jobs created by the third year. Under Kibaki, job creation declined slightly over a similar period.
Kenya’s workforce currently stands at 21.6 million, with the informal sector dominating at 83.8 per cent. Growth in employment has been driven largely by trade, manufacturing and construction, with the latter expanding due to increased investment in infrastructure and affordable housing.
“The construction industry experienced the most significant growth with a rise of 6.7 per cent, bringing the total to 490,100 workers in 2025,” KNBS said.
