Editor's Review

  • The stimulus package that targets agriculture, health, education, drought response, policy, infrastructure, financial inclusion, energy, and environmental conservation, follows the first two that were rolled out during the Covid-19 period.

On Wednesday during his Mashujaa Day speech, President Uhuru Kenyatta announced 13 strategic interventions to cushion Kenyans the key productive and service industries in the country.

The stimulus package that targets agriculture, health, education, drought response, policy, infrastructure, financial inclusion, energy, and environmental conservation, follows the first two that were rolled out during the Covid-19 period.

  1. Tea Sub-Sector: To safeguard the gains made in the Tea Sub-Sector, I direct the National Treasury to allocate KSh. 1 Billion in support of fertilizer subsidy for our Tea Farmers.
  2.  Sugar Sub-Sector: To safeguard the livelihoods of farmers within our nation’s sugar belt, I direct the National Treasury to allocate an additional KSh. 1.5 Billion in aid of the sugar sector, that will be appropriated towards factories maintenance and payment of farmer’s arrears.
  3. Coffee Sub-Sector: In acknowledgement of the pace of the ongoing reforms on the sub-sector, I direct the National Treasury to allocate KSh. 1 Billion to the Ministry of Agriculture to be appropriated towards completion of the ongoing targeted interventions in the Coffee Sub-Sector.
  4. Livestock sector: Noting the effects of the ongoing drought situation, I direct the National Treasury to allocate KSh. 1.5 Billion in support of the communities affected by the ongoing drought in the ASAL counties as part of our National Livestock Offtake Programme.
  5. Livestock sector: 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.
  6. Education: Noting the success of my Administration’s policy on 100% transition from primary to secondary education, I direct the National Treasury to allocate KSh. 8 Billion to the Ministry of Education for the CBC Infrastructure Expansion Programme.
  7. Health: To enhance access to medical coverage across our nation, and as part of our Universal Health Coverage programme, I direct 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 our nation. I further direct the National Treasury to allocate KSh. 3.2 Billion for immediate construction of the medical facilities.
  8. National Sanitation Programme: We started this programme to harness the energy of our young people and to give them a buffer against COVID related unemployment. 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 KSh. 10 billion for the third phase of the Kazi Mtaani Programme. The programme covering over 200,000 youths will be rolled out to all counties, with priority given to densely populated areas. The above measures will inject an additional KSh. 25 Billion into the economy. 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%.
  9. Energy and petroleum. Being fully aware of the positive strides being made in our economic recovery, the gains stand the risk of being eroded by high energy prices. To address the plight of our people, I order and direct that: a) The Ministry of Petroleum & Mining, jointly with the National Treasury, shall develop by 24th December, 2021, a framework for stabilization of petroleum prices, so as to cushion Kenyans against the turbulence caused by the volatility in fuel prices; and b) 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 % by 24th of December. I therefore, look forward to Kenyans being relieved of the burden of high tariffs by Christmas Day.
  10. Banking sector. The transformation of our economy and the emergence of our nation as a financial hub is as a result of the efficiency secured by technology. The gains we have made in the digitalization of financial processes and transactions have made it possible for us to better track and trace illicit flows of money. In view of these, we remain committed to the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) frameworks stipulated by the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). These include requirements for financial institutions to report cash transactions above USD10,000. However, it should also be recognized that the implementation of the framework by banks has been onerous for Micro, Small and Medium Enterprises (MSMEs). Cash still remains an important payments channel for MSMEs, representing 80% of all their financial transactions. Accordingly, the implementation of cash transactions requirements by banks has not been facilitative of the operations of MSMEs and has to some extent inhibited their growth. In this regard, I hereby further order the National Treasury, after consultations with other stakeholders, to immediately cause the upward revision of the cash transactions reporting threshold from the current mark of Ksh. 1 Million applicable to both withdrawals and deposits by customers. The financial institutions will retain their reporting obligations to the Financial Reporting Centre.
  11. Access to credit. Over the last decade, we have developed a robust credit information sharing mechanism for the banking sector which enables Kenyans develop a credit history to enable them access cheaper credit. This is an important pillar for pricing of loans. The COVID-19 Pandemic adversely impacted businesses, particularly MSMEs. As one of the COVID-19 emergency measures, we had suspended the listing with Credit Reference Bureaus (CRBs) of borrowers whose loans were non-performing at the beginning of the pandemic. This suspension lasted for six months, from April to September 2020, and provided relief particularly to MSMEs during the pandemic period. However, some of the MSMEs continue to struggle to get back to a sound footing following the adverse effects of the pandemic. In that regard, and to further augment the interventions we are making to give the Micro, Small, and Medium Enterprises reprieve, I further order the National Treasury, in consultation with all stakeholders, to secure the following additional measures to provide further space to the recovery of MSMEs: a) The relevant authorities will, for loans less than KSh.5 million, effect a moratorium of listing in CRBs for a period of 12 months to end September 2022; and b) Further, borrowers with loans below KSh. 5 million listed with CRBs from October 2020 to 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 and financial institutions to accommodate customers who seek to restructure their banking facilities.
  12. Digital financial services. In recognition of the importance of digital financial services, especially to the small scale traders and the household at large, I direct the National Treasury to engage all digital payment providers with an aim of deepening and expanding the use of digital payment channels.
  13. Vaccine production. If there is anything, we have learnt from the Covid 19 pandemic is the essence of self-reliance. As the first step towards this goal, we have established a company to facilitate this venture in the name of Kenya Biovax Limited. I, therefore, direct the Ministry of Health to operationalize the company to ‘form and fill’ and eventual manufacture of our vaccine by Easter of 2022.