By Ndung’u Wainaina
Africa Council on Human Security
First, I wish all sovereign people of Kenya a healthy, safe, humane and dignified New Year 2026.
The Year 2025 was one of the most difficult for the majority of Kenyans. The economic and financial life has been very traumatizing, painful and full of tears. More than 87% of Kenyans could not meet their basic needs and financial obligations.
Key social sectors especially education and health were in tatters. Our democracy faced consistent assault and regression. Kenya remains very unequal and partial free country.
It has been proven beyond reasonable doubt that President William Ruto is the biggest existential threat to our Constitution, democracy and economy. He ferociously abhors dissent, criticism and independent of thought. He runs one man show.
The Hustler economy narrative by President Ruto is irrevocably dead. It was big political lie. Hustlers have been left betrayed, abandoned and crushed. President Ruto has relapsed to old dubious politics of unhinged endless promises.
Kenya has very hardworking, industrious and entrepreneurial people. They don’t give up easily. They turn turbulence into resilience. Theirs is not just hope and faith. It is faith in action. This is what makes the country remain resilient.
The country faces enormous challenges of fiscal pressure, economic strain, inequality, bad governance, and limited jobs.
Whereas the macroeconomics indicators show stability, the economic reality on the ground is completely different. The microeconomics is dead with recession and stagflation.
Families and businesses are economically devastated. Their incomes, jobs and livelihoods have not only been constrained but also destroyed.
The country is in high debt risk distress with more than 70% of revenue going to pay unscrupulous debt. Fiscal deficit remains high. Private sector investments have declined. Industry has lost momentum and significant numbers closed. Crucial agricultural, construction and services are slowing with risk of further deceleration. Consequently, Hustle Bottom up economic model has turned into political hoax with pain and misery.
Kenya is a country of growth without broad shared economic transformation. Many Kenyans want a change in direction to a more inclusive and responsive economic growth model.
The current growth model largely state-led, debt-financed, and private sector underpowered must end.
This is moment for fundamental economic liberation. It is time for bold economic rights for all Kenyans for the conditions of the 21st century. This is upon realizing that political freedoms are only glass full without economic freedoms. A bold Economic Bill of Rights will initiate a Kenya economic revolution. It is foresight vision for new social compact.
A different economy is possible for Kenya. It is, People’s Economy First! It new economic and fiscal compact model driven by strengths in debt free, human capital, institutions, innovation, and entrepreneurial energy.
It is economy driven by investment in people, productivity and enterprise. People have real opportunities to earn, save and prosper with credible government enjoying legitimacy and trust. You can’t grow economy by taxing poverty. Tax is a consequence of value creation.not extraction.
Kenya has no choice but face scalpel for transformation to take place. There is progressive constitutional order but rotten political system. This is pivotal generational, demographic and political change moment for human and economic freedoms beyond survival mode.
The country must have new economic model based on high productivity, healthy skilled human resource, competitiveness and innovation.
The country must adopt more smarter spending and capital allocation with complete inefficiencies elimination. Revenue must be mobilized fairly with less tax and minimal regulatory burdens.
Private sector needs strong empowerment by cutting off government local market borrowing, remove unnecessary regulation and reducing credit costs. Skilled human capital will be key. Make education and training more accessible and quality.
Kenya must become connector country leveraging it’s strategic location, people and emerging new competitive multipolar world order. It will be new era of economic dignity and infinite economic possibilities.
Finally, energy costs must come down drastically by tackling structural problems of cartel priced costs and capacity. Investment in the green economy and energy will be pivotal in the new economic model.
Making the governance system clean with a stronger rule of law is the bedrock of the new economy. The country needs political leadership with foresight, steel and unchained. Kenya’s future is bright.
