President William Ruto has tapped five key ministries under Prime Cabinet Secretary Musalia Mudavadi to shape his economic diplomacy as he seeks to turn around Kenya's economy.
The President, who is grappling with a huge public debt, is relying on economic diplomacy to stabilise the foreign exchange market, position Kenya as a destination for Foreign Direct Investment (FDI) and create new markets for Kenyan goods and services.
The country faces significant challenges in managing its public debt, which has grown rapidly in recent years.
According to the latest Central Bank of Kenya (CBK) data, total public debt stood at Sh10.2 trillion as of June 2023, up from Sh8.6 trillion in June 2022.
Last week, the Head of State publicly stated that the only problem facing the country is the huge public debt.
“That is what has eaten my head for the last one year. If for every ten shillings you collect, seven shillings is spent on paying debts then there is a problem because you are left with only three shillings to pay salaries, to pay counties and for development,” President Ruto said.
He went on: “My intention is that we should flip it and use three shillings to pay debts and seven shillings to drive the country. That is my mission.”
President Ruto is banking on the ministries of Foreign and Diaspora Affairs, Labour and Social Protection, National Treasury and Economic Planning, Investment, Trade and Industry and Agriculture and Livestock Development to revive the country’s economy after a period of recession.
Mr Mudavadi who also doubles up as the Cabinet Secretary for Foreign and Diaspora Affairs will work hand in hand with Florence Bore (Labour), Njuguna Ndung’u (Treasury), Rebecca Miano (Trade) and Mithika Linturi (Agriculture) “to deepen Kenya’s diplomatic and economic partnerships.”
According to the Executive Order number 2 of 2023 issued by President Ruto, he stated that Mr Mudavadi “in collaboration with the Ministry of Labour and Social Protection,” will lead in the implementation of the National Labour Migration Policy as a key pillar of Kenya’s foreign policy.
He also stated that Mr Mudavadi’s office will work “with the support of the Cabinet Secretary for the National Treasury and Economic Planning, the Cabinet Secretary for Investments, Trade and Industry, and the Cabinet Secretary for Agriculture and Livestock Development, and other Ministries within the productive sector to deepen Kenya’s diplomatic and economic partnerships.”
Mr Mudavadi says his docket has already registered a 13 percent increase in diaspora remittances from USD 0.947 billion “in quarter three of 2022 to USD 1.073 billion in quarter three of 2023.”
“We have acquired 15 diplomatic properties abroad and enhanced mobile consular services to serve additional 9,000 Kenyans in the diaspora in 22 countries and 100 cities,” he said.
He noted that in November 2022, Kenya secured funding of USD 265 million (Sh41 billion) to upgrade the UN headquarters in Nairobi and has also facilitated four major summits in 2023 including the AU mid-year summit, Africa climate summit, youth connect and the diaspora conference.”
“We have also made a commitment to establish six additional diplomatic missions abroad by 2025/26, to promote growth in diaspora remittances from approximately Sh400 billion annually to Sh1 trillion annually by 2027,” said the PCS.
He disclosed that in collaboration with the Ministry of Labour and other government agencies, they have committed to facilitating labour export to the diaspora as well as enabling economic diplomacy, trade, investments and tourism among other programs.
Opening new missions with an emphasis in economic diplomacy will support Kenya’s national interests as Foreign Service Officers will continuously seek markets for Kenyan goods and services while positioning Kenya as the FDI destination.
President Ruto has reaffirmed his commitment to ensuring job opportunities for Kenyan youth beyond the country's borders amid criticism by opposition leader Raila Odinga who insists his government should focus on creating jobs domestically rather than pursuing opportunities overseas.
“…people will leave Kenya for employment abroad in the thousands,” President Ruto recently said at a Church function in Kiambu County.
He revealed an agreement with the State of Israel to send Kenyan workers to the nation in the coming months.
He urged Mr Odinga to refrain from early complaints, asserting that many more individuals would still seek employment opportunities abroad.
“I want to ask when one goes to Israel and gets a salary of Sh100,000, is there a problem there? There are people who do not understand how things are going on. I want to tell the leader of opposition (Mr Odinga) to stop complaining this early on; many people will still go abroad for jobs,” he added.
Mr Odinga had faulted President Ruto’s regime for lacking administrative policies to secure jobs for Kenyans domestically.
He argued that it was contradictory for the government to prioritise jobs abroad while neglecting the creation of better opportunities within the country.
“Young people with the new skills and knowledge that we need are being exported because the government cannot create jobs. And the government sees it as an achievement,” Mr Odinga said.
This follows the Ministry of Labour's announcement through Principal Secretary Shadrack Mwadime that the country would export approximately 1,500 Kenyans as casual workers to labour in Israel's agricultural fields on a three-year contract.
