NAIROBI, Kenya, Oct 20- As Kenya gears towards the gradual reopening of the economy, President Uhuru Kenyatta has announced a raft of measures, that are targeted towards cushioning the people from the economic meltdown occasioned by the COVID-19 pandemic.
The President has announced a 13-point agenda that he seeks to pursue, in a bid to lessen the economic pain to Kenyans- the majority of whom have lost their source of income since he effected stringent COVID-19 pandemic preventive measures, among them dusk to dawn curfew, which he has since lifted.
Of the measures announced by the President during his Mashujaa Day celebrations speech in Kirinyaga County on Wednesday, is the cushioning of borrowers from being listed in the Credit Reference Bureaus (CRBs).
He directed that negative CRB reports listed from October 2020 should not apply for the next 12 months.
The directive applies to loans worth less than Sh5million.
The President further directed that “borrowers listed with CRBs from October 2020to date will not have that listing incorporated in their credit reports for the next 12 months, ending September 2022.”
“In addition to foregoing measures and to accelerate our economic recovery, I urge all banks to accommodate customers who seek to restructure their banking facilities.”
He said the move was meant to cushion Kenyans and mostly those running Micro, Small, and Medium Enterprises, who are yet to recover from the COVID-19 pandemic adverse effects.
Kenya has for the last 10 years implemented a robust credit information sharing mechanism for the banking sector, which enables Kenyans to develop a credit history so that they can access cheaper loans.
The President said, “this is an important pillar for pricing loans. The COVID-19 pandemic adversely impacted businesses, particularly MSMEs.”
-Other Measures Of Reviving Kenya’s Economy-
The President pointed out that though struggling, ‘all indicators’ were that the country’s economy was on the recovery route.
“This rebound is as a result of the gradual reopening of the economy especially the services sector coupled with stronger global demand,” the President said.
He noted that “The recovery is reflected in the strong revenue performance for the Quarter ending September 2021.”
Ordinary revenue collection, he revealed, increased by 25.8 percent and amounted to Sh441.8 billion; amounting to a collection of Sh17 billion above the target.
The new stimulus programme, that will target the key productive and service sectors in 13 ‘strategic interventions will be implemented effective November 1, 2021.
The interventions will cover agriculture, health, education, drought response, policy, infrastructure, financial inclusion, energy, and environmental conservation.
President Kenyatta listed the first intervention to be tea sub-sector, “to safeguard the gains made in the tea sub-sector, I direct the National Treasury to allocate Sh1 billion in support of fertilizer subsidy for our tea farmers.”
He also directed the National Treasury to allocate Sh1.5 billion to aid the sugar sector, which will be appropriated towards factories maintenance and payment of farmers’ arrears.
To support the coffee sub-sector, he directed the National Treasury to allocate Sh1 billion to the Ministry of Agriculture, to support the ongoing reforms.
To support the livestock sector, the National Treasury was directed to allocate Sh1.5 billion in support of the communities affected by the ongoing drought in Arid and Semi-Arid areas.
“To secure a reduction in the prices of animal feeds, I order and direct the Cabinet Secretary for Agriculture, jointly with the National Treasury, to issue within seven days, a framework that will facilitate the reduction of the cost of animal and chicken feeds,” the President said.
The Sixth intervention is in Education; “noting the success of my Administration’s policy on 100% transition from primary to secondary education, I direct the National Treasury to allocate Sh8 Billion to the Ministry of Education for the CBC Infrastructure Expansion Programme.”
To enhance access to medical coverage across our nation, and as part of the government’s Universal Health Coverage programme, the President directed the Ministry of Health to establish an additional 50 New Level 3 Hospitals, to be situated in non-covered areas and densely populated areas across Kenya.
“I further direct the National Treasury to allocate Sh3.2 billion for immediate construction of the medical facilities,” he said.
Further, the President announced the return of the third phase of the Kazi Mtaani programme.
The National Treasury was directed to avail Sh10 billion for the third phase of the programme, which targets about 20,000 youth across the country and more so those living in densely populated areas.
“The above measures will inject an additional Sh25 Billion into the economy,” he said. “These new initiatives complement ongoing State interventions that are expected to sustain the momentum of recovery, with the year’s growth rate projected to be 6 percent.”
He further directed the Ministry of Petroleum and Mining jointly with the National Treasury to develop a framework “for stabilization of petroleum prices, so as to cushion Kenyans against the turbulence caused by the volatility in fuel prices.”
The framework should be ready by December 24, 2021.
The Ministry of Energy was also directed to implement the report of the presidential taskforce on review of power purchase agreements- that establishes a pathway for the reduction of electricity prices by 30 percent, by December 24, 2021.
He also directed the National Treasury to cause the upward revision of the cash transactions reporting threshold from the current Sh1 million applicable to both withdrawals and deposits by customers.
“The financial institutions will retain their reporting obligations to the Financial Reporting Centre,” he said.
He however cautioned that the government was still committed to the Anti-Money Laundering and Combating Financing of Terrorism frameworks stipulated by the proceeds of Crime and Anti-Money Laundering Act.
President Kenyatta further directed the National Treasury to engage all-digital payment providers “with an aim of deepening and expanding the use of digital payment channels.”
As the final intervention, the President directed the Ministry of Health to operationalize the newly formed Kenya Biovax Limited, which will be tasked with manufacturing vaccines.
Want to send us a story? Contact Shahidi News Tel: +254115512797 (Mobile & WhatsApp)
