This archive report was first published on 8 June 2020.
On June 8, 2020, the European Union announced an additional injection of Sh7.8 billion (€65 million) into Kenya's purse to help cushion the country from the effects of Covid-19.
The funds will be used to address the socio-economic impact of the pandemic, including helping Kenyans at risk of hunger and strengthening measures to prevent the virus spread.
EU Ambassador to Kenya Simon Mordue stated, "We are making a real difference to local communities across the country as well as in Nairobi’s informal settlements who are most affected by the outbreak, strengthening our partnership with Kenya."
Of the new tranche, Sh3.6 billion will be pumped into the government’s budget to mobilise resources towards containing the spread and impact of Covid-19 in the health, social and economic sectors.
Additionally, Sh1.2 billion will be allocated to vulnerable families and individuals in informal settlements through monthly cash transfers, with the EU conducting careful checks to avoid double recipients and ensure health services are provided to the most vulnerable people.
Small and Medium-sized Enterprises (SMEs) will directly receive between Sh2.4 billion and Sh3 billion for short-term working capital to keep them afloat during the pandemic and cut the ballooning job losses.
Furthermore, Sh600 million will be used for the Safe Trade Emergency Facility, which maintains critical supply chains for trade, ensuring food security and access to critically required medicines.
The EU has committed to supporting the government’s efforts in fighting the coronavirus pandemic to the tune of Sh35 billion, with EU member states having already provided more than Sh3.3 billion.
