National Treasury Cabinet Secretary John Mbadi has clarified his controversial decision to use soft-drink consumption as an indicator of economic recovery, explaining that he relied on the analogy to make economic progress relatable to everyday citizens.
Speaking on Thursday, August 20, 2026, Mbadi noted that despite the government sharing formal economic metrics such as Gross Domestic Product (GDP) growth, inflation rates, foreign exchange reserves, and lowered credit interest rates, many Kenyans continued to respond subjectively, frequently asking why they could not “feel the money in their pockets”.
“We have given out the evidence: GDP, foreign exchange, inflation, reserves, and credit rates. When you say that, they claim that they have not seen the money in their pockets,” Mbadi stated.
The Cabinet Secretary added that he chose an everyday example after noticing the public’s preference for simple comparisons.
“I decided that since they wanted to be subjective, I also would, and told them that there was more soda consumption in the country,” he said.
Grounding the Claim in Disposable Income
The Treasury chief defended his argument that the country’s economy has improved under President William Ruto’s administration. He reiterated that soft drinks function as a small “luxury” that households typically purchase only after covering primary necessities like food, housing, and education. Therefore, an uptick in soda consumption reflects increased liquidity and spare household income.
To back his stance that liquidity and economic capacity are strengthening nationwide, Mbadi cited a recent financial performance report from a commercial bank. He noted that the institution recorded stronger profits as non-performing loans (NPLs) dropped significantly.
“Today, in the newspapers, one of the banks posted profit because non-performing loans dropped from 13 percent to nine percent,” Mbadi highlighted. “Why are the numbers reducing? People have more ability, there is more liquidity, and they have the money to pay loans that they could not a year ago.”
Public Debate Over Economic Metrics
Mbadi’s initial “soda economy” remarks sparked widespread discussion across social media platforms and drew criticism from political opponents. Critics argued that using a single fast-moving consumer good to evaluate complex national finances overlooks ongoing pressures on household budgets, such as food inflation and high living costs. Others pointed out that conventional indicators, such as real GDP per capita, unemployment rates, and the Human Development Index (HDI), provide a more comprehensive assessment of economic health.
Despite the public pushback, Mbadi maintained that the government has successfully stabilized an economy that was previously on the brink of collapse. He reiterated that the Treasury will continue implementing fiscal reforms to deliver further financial relief to Kenyan households.
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