Treasury seeks parliamentary approval for investment tools

The National Treasury has defended the country’s economic performance and urged Members of Parliament to expedite the approval of key financial instruments. These instruments are intended to unlock significant investment funds.

A statement released on Thursday, January 29, 2026, indicated that recent economic indicators demonstrate growing stability, despite ongoing debates regarding the nation’s fiscal direction. Treasury officials briefed legislators on the economy and pending reforms during a retreat in Naivasha, Nakuru County.

Investor Confidence

The Treasury highlighted that macroeconomic stability is reinforcing investor confidence. This is reflected in improved capital market performance, sustained inflows from exports and diaspora remittances, and prudent public debt management. Kenya’s global perception has also improved, leading to better international benchmarks and ratings, which has helped maintain access to global markets.

The statement noted gains are further evidenced by Kenya’s improved global competitiveness rankings and recent sovereign credit rating upgrades.

Public Finance Reforms

Treasury officials also emphasized ongoing public finance reforms under the Ruto administration. These reforms prioritize tightening spending, improving accountability, and ensuring public funds provide value to citizens.

The government is implementing reforms in revenue mobilization, expenditure management, and public financial management. Key initiatives include the adoption of zero-based budgeting, implementation of the Treasury Single Account, accelerated digitization of government systems, and strengthened expenditure controls, all aimed at supporting fiscal consolidation and enhancing value for money.

The statement also indicated structural changes are being implemented to support long-term development and reduce reliance on borrowing. New institutions and reforms in state-owned enterprises are designed to attract private capital into development projects.

Notable milestones include ongoing State Owned Enterprises reforms and the establishment of the National Infrastructure Fund and the Sovereign Wealth Fund, which are designed to anchor long-term development and drive sustainable economic transformation. These reforms collectively seek to attract private capital while reducing reliance on borrowing and taxation.