This archive report was first published on 23 May 2020.
On May 23, 2020, President Uhuru Kenyatta unveiled an eight-point economic stimulus package worth Sh53.7 billion to cushion the country's economy against the COVID-19 pandemic. The package includes measures to support various sectors, including infrastructure, education, SMEs, health, agriculture, tourism, environment, and manufacturing.
The stimulus package is in addition to the Sh10 billion set aside to deal with the pandemic and Sh30 billion in the budget for the aid of vulnerable communities. Uhuru said the funds will be divided among key sectors to alleviate the effects of the pandemic.
Speaking during his address to the nation at State House Nairobi, Uhuru said, "It is true that the rate of infections may indeed surge upwards if we fail to comply with the protocols issued by the Ministry of Health." He also urged Kenyans to comply with measures put in place by the Ministry of Health to flatten the curve of infections.
The sectors will benefit as indicated below:
- Infrastructure: Sh5 billion has been set aside to hire local labour for rehabilitation to access roads and footbridges.
- Education: Sh6.5 billion allocated to the Ministry of Education to hire 10,000 teachers and 1,000 ICT interns to support digital learning and acquisition of Sh250,000 locally fabricated desks.
- SMEs: Sh10 billion to fast-track payment of outstanding VAT refunds and other pending payments to SMEs. Another Sh3 billion will be used as seed capital for SME Credit Guarantee Scheme.
- Healthcare: 5,000 additional healthcare workers with diploma and certificate level qualifications will be hired on a one-year contract. Sh1.7 billion will be set aside for the expansion of bed capacity in public hospitals.
- Agriculture: Sh3 billion will be directed to the supply of farm inputs through e-vouchers, targeting 200,000 small scale farmers. Sh1.5 billion to assist flower and horticulture producers to access international markets.
- Tourism: Soft loans will be issued to hotels and related establishments through Tourism Finance Corporation (TFC). Sh2 billion to support the Hotel industry; Sh1 billion to engage 5,500 community scouts and Sh1 billion for 160 community conservancies.
- Environment: Sh850 million will go to the rehabilitation of wells, water pans and underground tanks in the Arid and Semi-Arid areas. Sh1 billion for flood control measures and, Sh540 million for the Greening Kenya Campaign.
- Manufacturing: To enforce the 'Buy Kenya Build Kenya' push, the Government will direct Sh600m to the purchase of locally manufactured vehicles.
Uhuru also launched the Kazi Mtaani Initiative, a Sh10 billion national hygiene programme that will engage the youth in restoring public hygiene standards. "So far, 26,000 young people have been involved in the programme. Following approval of the budget, that number is expected to rise to 200,000," said President Uhuru.
