- Treasury has put on hold commitments, payments and claims; with only salaries to be processed.
- Controller of Budget Margaret Nyakang’o said the country is assessing the resource requirements for the coronavirus interventions.
Public hospitals will get a boost in medical supplies from funds mopped up from pay cuts and budget re-allocations in response to coronavirus.
The National Treasury says priority would also be given to expenditure towards hiring health professionals and frontline workers as the need arises.
Concerns are rife the country is not adequately prepared for mass infections, especially in infrastructure, hence the ‘stay home’ call by Health CS Mutahi Kagwe.
The Covid-19 Emergency Response Fund will also take care of emergency reliefs for the most vulnerable, older and poor persons in informal settlements.
More monies will be for SMEs “rendered vulnerable by the pandemic” and for the restoration of premises used for compulsory quarantine.
Kenya had 81 positive cases as of Wednesday and over 1,000 people under surveillance. It is projected that the numbers would rise further.
Treasury Cabinet Secretary Ukur Yatani, in the regulations, states that the funds will be used to increase the capacity of research institutions handling Covid-19 surveillance.
The first deposit to the Covid-19 Fund account is the Sh7.4 billion that Central Bank of Kenya released from the old Sh1,000 notes mop-up.
Yatani said they are looking to raising significant amounts from voluntary contributions from public officers and private individuals.
About Sh27 million will be realised in monthly pay cuts for President Kenyatta, DP William Ruto, cabinet secretaries, principal secretaries, and House speakers.
Treasury is also banking on grants, donations, subscriptions, bequests or other gifts made to the fund and any sources approved by the CS.
Treasury has put on hold commitments, payments and claims. Only salaries will be processed.
Controller of Budget Margaret Nyakang’o said the country is assessing the resource requirements for the coronavirus interventions.
As per the regulations, PS Julius Muia will be the administrator of the Fund and must ensure it is not overdrawn at any time.
The rules further provide that withdrawals be strictly for covid19 emergency response and records of such expenses kept for audit review.
Also to be wired to the account is cash freed by MPs in budget realignments approved during their special sittings next Wednesday.
The Treasury is mulling budget cuts affecting various departments at the Executive, Judiciary, and Parliament.
The Senate on Tuesday surrendered Sh200 million from its budget to aid in the fight against Covid-19.
Sources intimated to the Star that the reductions that will largely affect development projects, including CDF, to free cash for the health sector.
President Kenyatta appointed EABL boss Jane Karuku as chairperson of the board tasked with managing the fund.
Interior CS Fred Matiang’i and Council of Governors chairman Wycliffe Oparanya will represent the government at the board.
The President also nominated eight other corporate leaders as members of the team expected to mitigate the crisis.
In the last supplementary estimates, the government increased its expense by Sh80 billion and effected huge cuts from ministry budgets.
Even so, following the pandemic, the government had projected to release Sh140 billion to be injected into the economy.
It seeks to pay Sh47 billion pending bills – national government; Sh58 billion for bills in counties and Sh27 billion in VAT refunds.
According to the regulations before the National Assembly, Karuku’s team will consider and recommend the revenue and expenditure estimates for Yatani’s approval.
The board will also approve the opening and closing of bank accounts, disbursements from the fund and performance reports.
They will also conduct monitoring and evaluation of the programmes and activities under the fund.
“The board will also approve the financial statements and consult with the Cabinet Secretary on matters relating to the administration of the Fund,” the rules read.
Yatani asked Kenyans to excuse the Treasury for not conducting public participation on the regulations citing restrictions of social distancing.
“The regulations shall be subjected to the requisite scrutiny by Parliament in accordance with the Statutory Instruments Act,” the CS said.
He said the National Treasury and ministries of Interior, Health; Agriculture, and Trade will inform stakeholders on the provisions of the Public Finance Management (COVID-19 Emergency Response Fund) Regulations, 2020.
The ministries have been tasked to also reach out to Parliament and the public on the fund – set to be wound up once the country is declared free of the virus.
(edited by o. owino)