Uhuru’s goodies to Kenyans on his last Mashujaa Day

It was an early Christmas on Mashujaa Day.

President Uhuru Kenyatta unveiled a Sh26 billion stimulus package to accelerate the country’s economic growth as he rolled out benefits for Kenyans. 

As he lifted the night curfew that has been in effect for 19 months, Uhuru on Wednesday announced 13 strategic interventions to lift some burdens from Kenyans ravaged by the Covid-19 pandemic.

Insisting the time has come for Kenyans to move away from survival to co-existence with the disease, the President outlined robust interventions aimed at putting money in citizens' pockets.

Uhuru unveiled a Sh8 billion plan to expand infrastructure required for the one million new students set to join Junior Secondary.

Under the plan, the government will construct over 10,000 classrooms needed for additional learning space.

The first cohort of the CBC  will join junior secondary in January 2023 with the learners now in Grade 5.

The tenders will be done by local contractors near each school,  to provide stimulus to the local economy. 

The payments for the construction of the classrooms will be remitted directly to the contractors in their subcounties.

"This initiative will tap into the skilled manpower within the counties, empowering locals with enhanced economic opportunities,” Uhuru said. 

Uhuru asked the MPs who are patrons of the National Government Constituency Development Fund to chip in and direct resource to construct 10,000 more classrooms. 

The President also unveiled Sh1 billion to support fertiliser subsidies for small-scale tea farmers

“This sector has been the predatory grounds for cartels for decades, but it has now been liberated and its performance has started to improve,” the President noted, listing major reforms in agriculture.

On account of agricultural reforms, Uhuru said the price of Kenyan tea has increased by 42 per cent in the last year alone, the highest in five years 

On the sugar sector, the President said his government will pump in Sh1.5 billion; it will be used for factories maintenance and payment of farmer’s arrears. 

The third intervention will be in the coffee subsector where the President announced Sh1 billion to support ongoing reforms. 

“In the coffee sector, again I’m pleased to report the determined efforts from my administration to root out corrupt co-operatives that have been preying on our coffee farmers have borne fruit,” he said. 

The President said the revitalisation of New Kenya Planters Coffee Union has brought healthy competition into coffee milling activities.

Farmers in high-yielding areas now receive upwards of Sh100 per kilogramme, up from an average of Sh25 per kg in 2019, the head of state announced.

In the Livestock sector, the government will release Sh1.5 billion for the National Livestock Offtake Programme to ease the drought situation in the ASALS.

They include Garissa, Isiolo, Kilifi, Kitui, Mandera, Marsabit, Samburu, Tana River, Turkana and Wajir, Animals are dying of starvation.. 

In response to the farmers cries over the skyrocketing cost of animal and chicken feed, Uhuru ordered that within seven days a framework be developed to reduce costs.

The head of state unveiled Sh3.2 billion for immediate construction of 50 additional Level 3 hospitals

The hospitals will be in areas with no hospitals and densely populated areas countrywide.

This is part of the government’s plan to enhance access to medical coverage and as part of Universal Health Coverage programme during the Covid-19 pandemic. 

The President also announced the resumption of the third phase of the Kazi Mtaani programme that will be rolled out at a cost of Sh10 billion.

Kazi Mtaani is an initiative designed to cushion the most vulnerable youth in the informal settlements by engaging them mostly in sanitation programmes.  

“The programme covering over 200,000 youths will be rolled out to all counties, with priority given to densely populated areas,” the President said of the initiative to create jobs for the youth. 

Politicians, including ODM leader Raila Odinga, have asking the government to extend the Kazi Mtaai programme countrywide to help unemployed youth.

The President said the strategic initiatives will complement ongoing state interventions to sustain the momentum of economic recovery.

The year's growth rate is projected to be six per cent.

As a response to the public outcry over the escalating costs of energy that are driving high the cost of living, Uhuru directed his officers to ensure the cost power is reduced by 30 per cent by December 24. 

“I therefore, look forward to Kenyans being relieved of the burden of high tariffs by Christmas Day,” Uhuru said.

Responding to the hue and cry from Kenyans,  especially in the Micro, Small and Medium Enterprises, and to increase liquidity, Uhuru asked the banking sector to increase the cash transaction reporting threshold from Sh1 million. 

The threshold applicable to both cash withdrawals and deposits was imposed as part of the government’s efforts to address money laundering and benefits from proceeds of crime. 

Uhuru said the implementation of cash transactions requirements by banks has not been facilitative of the operations of MSMEs and has to some extent inhibited their growth.  

“Cash still remains an important payments channel for MSMEs, representing 80 per cent of all their financial transactions,” he said. 

However, banking institutions will only be required to inform the Financial Reporting Centre about cash transactions above Sh1 million without prohibiting anyone.

The President also ordered that Kenyans who have been listed at the Credit Reference Bureaus for defaulting on loans below Sh5 million be granted a moratorium for 12 months until September 2022. 

“Borrowers with loans below Sh5 million listed with CRBs from October 2020 to date will not have that listing incorporated in their credit reports for the next 12 months, ending September 2022,” he said. 

As one of the Covid-19 emergency measures, the government suspended the listing with RBs of borrowers whose loans were non-performing at the beginning of the pandemic.  

This suspension lasted for six months, from April to September 2020, and provided relief particularly to MSMEs during the pandemic.

Uhuru also revealed Kenya has established a company known as Kenya Biovax Limited to facilitate the production of Covid-19 vaccines by April next year. 

(Edited by V. Graham)