This archive report was first published on 12 June 2020.
On June 12, 2020, Treasury Cabinet Secretary Ukur Yatani unveiled an eight-point economic stimulus plan to save the economy from total collapse.
The plan, first detailed in May, aims to cushion sections of the population, especially those hard-hit by the Covid-19 pandemic.
Key focus areas include creating jobs, especially for young people through the Kazi Mtaani programme, which will employ 200,000 youth from informal settlements in major urban centres.
The government will spend Sh10 billion in the labour-intensive programme, which has already employed 26,000 people in its pilot phase.
Small and Medium Enterprises (SMEs) that have suffered the onslaught of the coronavirus will also be boosted in the recovery package.
Health and education sectors will also draw support from the package, with the government allocating Sh7.4 billion for education and Sh3 billion to subsidise farm inputs.
Additionally, the government will spend Sh10 billion to fast track verified Value Added Tax refunds and Sh3 billion to operationalise a credit guarantee scheme to ease access to credit for SMEs.
Yatani said the government is working on a bigger post-Covid-19 economic recovery strategy, a long-term plan which will be in line with the country’s development blueprint - Vision 2030.
