President Kenyatta unveils third Ksh.25 billion stimulus program

President Kenyatta unveils third Ksh.25 billion stimulus program

President Uhuru Kenyatta has unveiled the third economic stimulus program to be implemented from November this year.

President Uhuru Kenyatta has unveiled the third economic stimulus program to be implemented from November this year.

The new program whose details were uncovered at the Mashujaa Day celebrations in Kirinyaga County on Wednesday cover 13 key thematic areas deemed to be crucial in firming up the economic rebound.

This to include the sectors of agriculture, health, education, drought response, policy, infrastructure, financial inclusion and environmental conservation.

The national sanitization program famously dubbed Kazi Mtaani will get the lion’s share of the new funds at Ksh.10 billion as it is extended for a third phase.

Meanwhile, the education sector will receive Ksh.8 billion for the expansion of infrastructure under the competence-based curriculum (CBC) to include the construction of 10,000 junior secondary classrooms.

The tea sector is set to receive Ksh.1 billion to support the fertilizer subsidy program for small-scale tea farmers while the coffee sector will be handed Ksh.1 billion for the completion of ongoing interventions.

Ksh.1.5 billion will be handed down to the sugar sector with proceeds going towards factory maintenance and the payment of farmers arrears.

The livestock sector will meanwhile receive Ksh.1.5 billion to alleviate woes faced by pastoralist communities, caused by the ensuing frought while the National Treasury has been directe to issue a framework to lower the cost of animal and chicken feed within the next one week.

At the same time, the Ministry of Petroleum and Mining and the National Treasury has been directed to develop a framework for the stabalization of petroleum prices by December 24 to cushion Kenyans from current volatility in fuel prices.

Similarly, the Ministry of Energy has been directed to follow through with the implementation of the full report of the Presidential Taskforce on the review of power purchase agreements which envisions a cut to electricity costs by one third by Christmas Day.

Included in the stimulus program is the operation of the Kenya BioVax Limited, an entity tasked with commencing local vaccine manufacturing by Easter 2022.

According to President Uhuru Kenyatta the program now focuses on ramping up growth in the ‘post-pandemic’.

“With significant progress registered in the containment of COVID-19, I believe its now time to switch our focus from survival to co-existing with the disease,” he said.

“As we continue to build back better, we are witnessing recovery in the economu with its rebound being attested to by all leading economic indicators. They all point towards a strong economic recovery beginning this year.”

The new stimulus program signals the first supplementary budget for the 2021/22 fiscal year with the planned spending requiring Treasury to make changes to its spending plan announced in June with authorization from the National Assembly.