Wednesday, Jun 3, 2020
HomeEconomyPresident Kenyatta approves Ksh.53.7 billion post-COVID-19 stimulus package

President Kenyatta approves Ksh.53.7 billion post-COVID-19 stimulus package

President Kenyatta approves Ksh.54 billion post COVID-19 stimulus package

President Uhuru Kenyatta approved the post-COVD-19 stimulus package worth Ksh53.7 billion that was tabled by the Ukur Yatani-led National Treasury.

In a letter written to the Clerk of the National Assembly Michael Sialai, outlined plans which will further channel in further Ksh32.4 billion into eight areas which will see the government spend a colossal Ksh53.7 billion, to buffer the economy.

The Nairobi Metropolitan Services (NMS) being foreseen by the presidency is set to receive a total of Ksh.27.9 billion budgets to the Presidency and Interior Ministry are expected to be enhanced by Ksh.3.9 billion. Ksh.4.6 billion will be directed to the leasing of motor vehicles from the State Department of Interior to the National Treasury.

Nealy Ksh.13.5 billion will be directed towards boosting the liquidity of businesses in the country including Ksh.10 billion for the hastening of Value Added Tax (VAT) refunds to businesses and payment of pending bills below Ksh.3 million.

The letter indicates a Ksh.513 million which will be used to purchase 400 locally manufactured vehicles, and Ksh.3 billion would be used to serve as seed capital for the expected Credit Guarantee Scheme to the Small Medium Enterprises (SMEs).

A total of Ksh.5.9 billion will be channelled into the tourism sector which has been hit severely by the pandemic, with Ksh3 billion set aside for soft loans for renovation of hotels through the Tourism Finance Corporation. Ksh.874 million is earmarked as a marketing fund to the Kenya Tourism Fund (KTB).

A combined Ksh.2 billion is to be channelled as grants to 160 community conservancies and the engagement 5,500 community scouts for a year by the Kenya Wildlife Service (KWS).

Other areas covered in the stimulus package include Ksh.5.3 billion to agriculture which includes Ksh.1.5 billion in support to local cut flower producers and Ksh.470 million as working capital for the Kenya Meat Commission. (KMC).

The letter further, highlights a Ksh.4.2 billion that has been planned for the expansion of the Kazi Mtaani Programmes in all major towns in the country while Ksh.3.1 billion is set to improve education outcomes including the hiring of 10,000 teachers on contract.

Road rehabilitation works will receive Ksh.410 million while water and sanitation programmes are to receive a Ksh.900 million injection of new funding.

The stimulus package is expected to be funded through a combination of additional funding from surplus mop ups from parastatals, development partners, and budget realignments.

MDAs are expected to shed Ksh.8.3 billion from their initial funding while the state is expected to mop up Ksh.12.3 billion in parastatal surpluses.

A further Ksh.17.2 billion is expected to be sourced from the European Union and Denmark’s budget support programmes and the sports and road annuity funds.

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