Ruto promises 130,000 new hostel units, says universities to be off debt in four years

"Our first major investment is to construct hostel spaces for 130,000 students in universities, colleges, and related institutions. This is not borrowed money—we are not taking loans. We are funding this using our own locally raised resources. That is how we build a nation,” he said.

"I am informed that in the next two to three, maybe four years, all the universities will be out of the debt trap.”

Further, the Head of State said that the new funding model for higher education aims at ensuring fair access for all students.

“These are the same funds we’re using to construct housing units and build 400 markets across the country; not with loans, but with resources generated by Kenyan taxpayers. That’s how we bring development closer to the people,” he said.

Further, he said Kenya had a previously poor savings culture but the shift to a six percent mandatory savings contribution by employees and employers is already bearing fruit.

“We had saved Sh320 billion in 60 years. But from 2023 to now, we have already saved Sh280 billion. By the end of 2027, we expect to hit the Sh1 trillion mark,” he said.

Dr Ruto reiterated the importance of a strong cooperative movement in supporting the agricultural sector and expressed optimism that the Cooperative Bill currently in Parliament will further boost efficiency and drive transformation.

The President highlighted positive developments in the agriculture sector, saying increased productivity in maize, tea, and coffee farming as well as reforms in sugar and milk production are boosting incomes for farmers.

“In 2022, we produced 44 million bags of maize. This year, we’ve harvested 67 million bags. That’s an extra 23 million bags. Our tea earnings have gone up by Sh60 billion, coffee prices are rising again, and milk producers are getting a better deal. We’ve also reduced sugar imports by 100,000 metric tonnes,” he said.

He further outlined his administration’s ongoing efforts to reform agriculture and strengthen cooperatives, saying recent data shows marked improvements in productivity and reduced reliance on imports.

The President said structural changes in agriculture are already bearing fruit, especially in key cash crops.

He also noted that sugar imports, which previously ranged between 300,000 and 400,000 tonnes annually, had fallen below 100,000 tonnes this year, crediting improved productivity and reforms in the sugar sector.

“We’ve seen maize harvests grow from 40 to over 70 million bags, tea earnings rise to Sh215 billion, and coffee prices increase to as high as Sh140 per kilo,” he said.

President Ruto announced the conclusion of the privatisation process for five state-owned sugar mills, asserting that such businesses are better managed by the private sector.

“We’ve just finalised that transition. You will see the results in due time,” he said.

The President emphasised the crucial role of cooperatives in this transformation, citing a proposed law in Parliament that seeks to restructure and empower the sector. He said the legislation was informed by stakeholders and will enhance the capacity of cooperatives to support farmers and streamline agricultural value chains.

“I’m looking forward to signing that bill. We must leverage the strength of cooperatives agricultural growth,” he stated.

“In my view, the government has no business owning sugar mills. These facilities should be operated by individuals in the private sector. We have just completed that transition, and I believe this will lead to significant transformation in the sugar industry. My goal and we are working toward it is to ensure that within the next three years, Kenya becomes a net exporter of sugar,” he added.

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