- President Uhuru Kenyatta has unveiled a Sh25 billion economic stimulus package to kick start the economy that shrunk during the last year due to the Corona crisis.
- Â His critics allege that the move is to build his political base ahead of the 2022 General Election.
President Uhuru Kenyatta has unveiled a Sh25 billion economic stimulus package to kick start the economy that shrunk during the last year due to the Corona crisis. . His critics allege that the move is to build his political base ahead of the 2022 General Election. The bailout package is targeted at improving the cash flow and purchasing power of the people.
Revival of the economy and social welfare schemes have become the selling point for the early campaigns for the upcoming elections in Kenya. The stimulus package comes amid a growing power struggle between the President and his deputy, William Ruto. Though Mr. Kenyatta during the last election had promised to support Dr Ruto in 2022, he is now favouring opposition leader Raila Odinga.
The stimulus package is aimed at widening the market offering better prices to tea, coffee, sugar, and livestock farming to pacify rural Kenya that has been hit hard by the recession. About Sh1 billion each is allocated to support tea and coffee sub-sectors while sugarcane and livestock will receive Sh1.5 billion each.
To address the employment problem facing the youth, the President also announced the third phase of Kazi Mtaani, a Sh10 billion plan that will offer 200,000 youth, menial jobs. Nearly 730,000 jo losses were recorded last year when Kenya imposed coronavirus-induced lockdowns. Another allocation of Sh8 billion for the construction of schools using local contractors and labour, is also expected to boost cash flow at the grassroots. Mr Kenyatta is also introducing subsidies to cut electricity and fuel prices to defuse public outrage about the rising cost of living.
The President also lifted the nationwide curfew that has been in place since March 2020 to curb the Pandemic that will give a boost to the hospitality, retail and transport sectors.
