President Uhuru Kenyatta on Saturday uunveiled a Sh53.7 billion, 8-point economic stimulus program to stimulate growth of the economy and cushion families during the Covid-19 crisis. The stimulus package is in addition to the Sh10 billion set aside to deal with the coronavirus pandemic and Sh30 billion in the budget for the aid of vulnerable communities.
Addressing the nation from State House Nairobi, he said that the challenge has put the country on a new road and that everyone must continue to acknowledge “our unknown as we find a way forward.”
He added that “I am comforted by the fact that Kenyans are a people who know how to give a good fight. If we stay the course we shall overcome,” said the president.
The 8-Point Economic Stimulus Programme include;
- Infrastructure
To address the challenges brought about by the ongoing rains and floods, Sh5 billion has been allocated to rehabilitate infrastructure with directions that local labour and material must be used in the repair of access roads and footbridges.
- Education
Sh6.5 billion allocated to the Ministry of Education. This will be used to hire 10,000 teachers and 1,000 ICT interns to support digital learning and acquisition of Sh250,000 locally fabricated desks.
- Small medium Enterprizes(SMEs)
Sh10 billion to fast-track payment of outstanding VAT refunds and other pending payments to SMEs. Another Sh3 billion will be used as seed capital for SME Credit Guarantee Scheme.
- Health
5,000 additional healthcare workers with diploma and certificate level qualifications will be hired on a one-year contract. Sh1.7 billion will be set aside for the expansion of bed capacity in public hospitals.
- Agriculture
Sh3 billion will be directed to the supply of farm inputs through e-vouchers, targeting 200,000 small scale farmers. Sh1.5 billion to assist flower and horticulture producers to access international markets.
- Tourism
Soft loans will be issued to hotels and related establishments through Tourism Finance Corporation (TFC). The government will also engage 5,500 community scouts under the Kenya Wildlife Service at a cost of Sh1 billion.The support will be made available to approximately 160 community conservancies at a cost of Sh1 billion.
In addition to this, funding will also be set aside to support the operations of the country’s premier hospitality institution, Utalii College, to guarantee the steady supply of well-trained hospitality professionals. A total of Sh2 billion will be set aside to support the renovation of facilities and the restructuring of business operations by actors in the tourism industry.
- Deforestation and Climate change
Sh850 million will go to the rehabilitation of wells, water pans and underground tanks in the Arid and Semi-Arid areas. Sh1 billion for flood control measures and, Sh540 million for the Greening Kenya Campaign to mitigate the impact of deforestation and climate change, and to enhance the provision of water facilities
- Manufacturing
To enforce the Buy Kenya Build Kenya push, the Government will direct Sh600m to the purchase of locally manufactured vehicles.
Uhuru also urged Kenyans to comply with measures put in place by the Ministry of Health to flatten the curve of infections.The president noted that the pandemic has had a negative impact on Kenya’s economy with many people stripped of their dignity and thrown into financial ruin, unable to feed their families or afford rent.
He further noted that his government opted to send money directly to the vulnerable families due to loss of more than half of relief resources sent to families affected by calamities, in the past, to brokers and logisticians.
