This archive report was first published on 24 May 2020.
On Saturday, President Uhuru Kenyatta announced a Sh53.7 billion eight-point economic stimulus programme to address the unfolding economic crisis caused by the Covid-19 pandemic.
The plan, which is the boldest yet by the Jubilee administration, aims to stimulate growth and cushion families and companies from the economic downturn.
President Kenyatta said the pandemic has moved from a health crisis to an economic one, with hundreds of thousands of jobs lost and businesses closed due to restricted movements and suspension of international flights.
“To combat the effects of this downturn, my administration has had to take additional measures,” President Kenyatta said.
The first element of the eight-point plan is infrastructure, with Sh5 billion set aside for hiring local labour to rehabilitate access roads, footbridges, and other public infrastructure.
The government hopes this will generate construction jobs for Kenyans across the country and stimulate micro and small business enterprises through the use of local labour and construction materials.
Education is the second element of the stimulus programme, with an additional Sh6.5 billion allocated to the Ministry of Education to hire 10,000 teachers and 1,000 ICT interns to support digital learning.
The funds will also support the improvement of school infrastructure, including the acquisition of 250,000 locally fabricated desks.
President Kenyatta said the aim is to get thousands of graduates off the bench and into action while supporting local artisans and builders’ businesses.
The third element of the plan targets small and medium enterprises (SMEs), with Sh10 billion allocated to fast-track payment of outstanding Value Added Tax (VAT) refunds and other pending payments.
Another Sh3 billion has been set aside as seed capital for the SME Credit Guarantee Scheme to provide affordable credit to SMEs.
President Kenyatta also announced plans to hire an additional 5,000 healthcare workers with diploma or certificate level qualifications on one-year contracts to enhance the implementation of the Universal Health Coverage (UHC) programme.
The government will also pump more resources into medical research facilities to enhance their capacity and generate new innovations in the medical field.
The fifth element of the stimulus programme is agriculture, with Sh3 billion allocated to supply farm inputs through e-vouchers targeting 200,000 small-scale farmers.
This is meant to cushion farmers from the effects of adverse weather and secure food supply chains in the post-Covid-19 period and into the future.
The government will also provide soft loans to hotels and related establishments through the Tourism Finance Corporation (TFC) to support renovation of facilities and the restructuring of business operations.
A total of Sh2 billion will be set aside to support the tourism sector, which has suffered the most due to restricted movements and suspension of international flights.
President Kenyatta said the government is dispatching Sh250 million every week to vulnerable families to catalyse local economies from the bottom up across the country.
