Ruto raises research funding to 2 per cent of GDP in bid to expand digital economy

Ruto raises research funding to 2 per cent of GDP in bid to expand digital economy

President Ruto framed the initiative as part of Kenya’s broader economic freedom agenda, stressing that investments in human capital and digital skills are crucial for creating opportunities for youth and ensuring the nation remains globally competitive.

President William Ruto has announced plans to increase Kenya’s national research fund from 0.8 per cent to 2 per cent of GDP, aiming to strengthen STEM education, foster innovation, and drive ICT-led growth.

Speaking during the 62nd Jamhuri Day celebrations at Nyayo National Stadium, he emphasised that the move is part of a broader strategy to equip the nation’s youth with the skills and tools needed to thrive in the digital economy and position Kenya as a regional hub for technology and innovation.

“This is not social spending; it is nation-building,” he said.

The announcement comes as part of Kenya’s ongoing push to become a knowledge-driven economy, addressing longstanding gaps in research funding and innovation.

Currently, the country spends below the UNESCO-recommended 1–2 per cent of GDP for research, and while initiatives in STEM education, tech hubs like iHub, and digital platforms such as M-Pesa have shown promise, there remains a need for expanded support.

President Ruto framed the initiative as part of Kenya’s broader economic freedom agenda, stressing that investments in human capital and digital skills are crucial for creating opportunities for youth and ensuring the nation remains globally competitive.

“This initiative will equip Kenyans with the skills and tools to lead in the digital age,” he said, noting that it complements ongoing programmes in agriculture, healthcare, education, and youth empowerment.

Ruto also cited global examples, including South Korea, Singapore, and Israel, which achieved rapid economic transformation through strategic investments in research, STEM, and ICT.

By raising the national research fund, the President says Kenya aims to build a robust innovation ecosystem capable of generating jobs, boosting productivity, and supporting industrialisation.

The announcement forms part of a wider speech reviewing Kenya’s progress since independence and outlining a Sh 5 trillion roadmap to transform the country into a first-world economy, with ICT and digital innovation as central pillars.

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