The Post Covid-19 Economic Recovery Strategy ERS accords priority to implementing measures to support the recovery and growth of the important sector of Kenya’s economy which provides employment and a means of livelihood to many Kenyans.
ERS is to implement measures to mitigate the adverse socio-economic effects and accelerate economic recovery and is also expected to provide a road map for the transition to the fourth Medium Term Plan (MTP) and a new development framework beyond the current Vision 2030.
Cabinet Secretary, National Treasury and Planning says the ERS will give focus to the private sectors to enhance the role of economic growth.
”The Strategy places priority and focuses on several key areas including enhancing budgetary allocations to strengthen health care systems; facilitating the private sector to enhance its role in the recovery and growth of the economy; facilitating the recovery and growth of key economic such as tourism, and MSMEs, manufacturing and transport which have been hard hit by the pandemic.” said the Cabinet Secretary, National Treasury and Planning.
The Government has put in place an MSME Credit Guarantee Scheme to increase the amount of credit available to MSMEs. The sector will further be supported by other initiatives such as “Build Kenya Buy Kenya” and the 40 per cent local content requirement, the tourism sector has taken the biggest hit in terms of job losses and income.
To support the sector’s recovery, the Government set up a Kshs 3 billion stimulus hotel refurbishment fund and Kshs 2 billion to support the employment of game rangers in the wildlife conservation sector. The sector will further be supported to train hospitality staff on new safety and hygiene requirements arising from Covid-19.
To enhancing the Role of the Private Sector in the Recovery Strategy, The private sector in Kenya accounts for 70.5 per cent of the total wage employment in the modern sector. The Covid- 19 pandemic has reduced economic activities in the private sector by a margin not experienced in a long time. This has led to massive job losses, pay cuts and reduced contribution to government revenue. The private sector will play a significant role in financing implementation of ERS, driving innovation in local production, increasing exports, and creating employment opportunities.
The Government has injected seed to the MSME Credit Guarantee Scheme a capital of Kshs 3 billion to start the Scheme and is working with banks and Development Finance Institutions (DFIs) to increase the amount of funding available for credit to the MSMEs. The Scheme will provide affordable credit to the MSMEs in an efficient and structured manner and it will rely on the best professional standards and practices of the private sector credit arrangement.
The program aims to expand market access for local products in Kenya, regionally and globally for the MSMEs.
