Insights from Director General Albert Mwenda at the FSD Africa Sustainable Capital Markets Conference

At the FSD Africa Sustainable Capital Markets Conference, Director General for Budget, Fiscal, and Economic Affairs at Kenya’s National Treasury, Albert Mwenda, shared a comprehensive vision for Kenya's economic stability, capital market development, and sustainability goals.

Economic Progress Amid Challenges

Director General Mwenda underscored Kenya’s resilience in maintaining macroeconomic stability. Citing key statistics, he highlighted that Kenya's GDP growth has outpaced Africa’s average, inflation has dropped to a historic low of 2.7%, and the Central Bank’s adjustments have brought interest rates to stable levels. With healthy foreign reserves covering 4.3 months of imports, he acknowledged fiscal challenges, including high public debt and ongoing socio-economic inequalities.

Addressing Climate and Socioeconomic Challenges

Mwenda highlighted Kenya’s commitment to climate resilience, aiming to reduce emissions by 32% by 2030. Initiatives like the National Climate Finance Mobilisation Strategy and the National Green Fiscal Incentive Policy Framework are central to Kenya's approach to attract investments for green projects and support the country's climate agenda.

Strengthening the MSME Sector

Director General Mwenda stressed the importance of Kenya’s MSME sector, which contributes approximately 34% of the GDP and generates over 90% of new jobs. Recognizing the financing gap, estimated at $19.3 billion, the Treasury has implemented a Credit Guarantee Scheme to support MSMEs’ access to financing—a vital move for job creation and economic growth.

Domestic Resource Mobilization and Capital Markets Development

Director General Mwenda emphasized the need for Kenya to strengthen its domestic capital markets as a means of supporting development financing. He pointed to innovative financing options, such as green bonds, public-private partnerships, and carbon markets, as critical tools to attract both local and international investments. These markets, he said, have untapped potential to finance major government and private sector projects, in alignment with the African Union’s Agenda 2063.

Moving Forward: Opportunities and Recommendations

In his concluding remarks, Director General Mwenda called for greater involvement from domestic investors and encouraged partnerships to mobilize capital markets for Kenya's development goals. He emphasized the need for forums like FSD Africa’s conference to identify collaborative solutions for a robust financial future.