President Uhuru Kenyatta has lined up up a multi-billion shilling stimulus package targeted to lift critical sectors of the economy.
The Sh25 billion stimulus package is to support businesses and individuals as it seeks to reduce the impact of Covid-19 on the economy.
As he lifted the night curfew that has lasted for nearly two years, Kenyatta said that the time has come for Kenyans to shift their focus from survival to co-existing with Covid-19.
“With significant progress registered in the containment of Covid-19, I believe that it is now time to shift our focus from survival to co-existing with the disease. In that regard, my administration will be rolling out the third financial stimulus programme designed to accelerate the pace of our economic growth and sustain the gains we have made,” he said as addressed Kenyans during this year’s Mashujaa Day celebrations.
Among the sectors that the interventions will cover include agriculture, health, education, drought response, policy and infrastructure, financial inclusion, energy and environmental conservation.
Farmers have been placed as the biggest beneficiaries in the project with tea, coffee, sugar and livestock sub-sectors getting Sh5 billion to boost food processing.
The President directed the National Treasury to set aside Sh1.5 billion to cushion livestock farmers from the devastating effects of the ongoing drought.
The money will go towards acquisition of livestock by the government through the National Livestock Off-take Programme and will mostly be focused in arid and semi-arid counties, which have been heavily affected by the drought.
He also directed the National Treasury and Agriculture ministries to look into mechanisms of reducing the cost of animal feeds.
“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,” he said.
Kenyatta also announced that the government would set aside Sh1 billion for fertiliser subsidy for smallholder tea farmers and another Sh1.5 billion for the maintenance of government-owned sugar factories, and payment of farmers’ arrears.
The coffee sub-sector will also get Sh1 billion, which the Agriculture ministry will use to conclude reforms it has been undertaking in the industry.
Kenyatta unveiled a Sh8 billion plan to expand infrastructure required for the one million new students set to join Junior Secondary.
Under the plan, the government will construct over 10,000 classrooms needed for additional learning space.
The first cohort of the CBC will join junior secondary in January 2023 with the learners now in Grade 5.
The tenders will be done by local contractors near each school, to provide stimulus to the local economy.
The payments for the construction of the classrooms will be remitted directly to the contractors in their subcounties.
“This initiative will tap into the skilled manpower within the counties, empowering locals with enhanced economic opportunities,” Uhuru said.
Injections of support to tea, coffee, sugar sectors. President said cartels being dismantled, prices improving
The President asked the MPs who are patrons of the National Government Constituency Development Fund to chip in and direct resource to construct 10,000 more classrooms.
The head of state unveiled Sh3.2 billion for immediate construction of 50 additional Level 3 hospitals
The hospitals will be in areas with no hospitals and densely populated areas countrywide.
This is part of the government’s plan to enhance access to medical coverage and as part of Universal Health Coverage programme during the Covid-19 pandemic.
The President noted that the high cost of energy could erode the economic gains made so far made.
He directed the Energy ministry to ensure implementation of recommendations expected to cut power prices by a third.
Uhuru also directed the Petroleum ministry to put in place measures to stabilise retail fuel prices by Christmas Day.
“I order and direct that the ministry of Petroleum and Mining, jointly with the National Treasury, shall develop by December 24, 2021, a framework for stabilisation of petroleum prices, so as to cushion Kenyans against the turbulence caused by the volatility in fuel prices.
“The ministry of Energy shall secure the full implementation of the Report of the Presidential Taskforce on Review of Power Purchase Agreements, that establishes a pathway for the reduction of electricity prices by 30 per cent by December 24,” he said.
The Kazi Mtaani initiative will get an additional Sh10 billion to provide a form of social protection for jobless youth across informal settlements.
The programme will cover more than 200,000 young people.
“Noting the success of Kazi Mtaani programme and its effect in enhancing opportunities for the youth across the country, I direct the National Treasury to allocate Sh10 billion for the third phase of the Kazi Mtaani programme,” the President said.
The Head of State announced that the stimulus programme would be rolled out effective November 1.