President Uhuru Kenyatta. He unveiled a Ksh25 billion ($225,123,817) economic stimulus package to jump-start the economy, create jobs, and pacify his political base ahead of the 2022 General Election. FILE PHOTO | NMG Kenya’s President Uhuru Kenyatta Wednesday unveiled a Ksh25 billion ($225 million) economic stimulus package to jump-start the economy, create jobs, and pacify his political base ahead of the 2022 General Election.
The stimulus package will mainly seek to widen the market and offer better produce prices to tea, coffee, sugar, livestock farming — sub-sectors that are critical in putting money in peoples’ pockets or improve purchasing power.
The President also announced the third phase of Kazi Mtaani, a Ksh10 billion ($90 million) plan that will offer 200,000 youths menial jobs in an economic setting where people below the age of 25, mainly secondary school and college graduates, have been the hardest hit by job cuts.
He directed the allocation of Ksh8 billion ($72 million) for the construction of schools using local contractors and labour, seen as another attempt at boosting cash flow at the grassroots.
The choice of key cash crops in Mr Kenyatta’s bailout suggests he is keen to calm the restive rural Kenya that has suffered the brunt of sluggish economic activity and reduced cash in circulation.
The Treasury has been directed to allocate Ksh1 billion ($9 million) each to support tea and coffee sub-sectors while sugarcane and livestock will receive Ksh1.5 billion ($13 million) each.
Nearly 730,000 jobs were lost last year when Kenya imposed coronavirus-induced lockdowns that led to layoffs and pay cuts, but the country’s economy is presently recovering.
Economic output contracted for the first time in nearly three decades last year, pummeled by the impact of the coronavirus crisis that hit key sectors such as tourism.
The bailout plan comes amid a growing power struggle between the President’s allies and those of his deputy, William Ruto, who considers himself the heir apparent.
Mr Kenyatta had said during the last election that he would support Dr Ruto in 2022 but is leaning towards veteran opposition leader Raila Odinga.
The economy and household welfare have taken centre stage in the early campaigns, with protagonists selling their social protection plans.Mr Kenyatta is also racing to cut electricity and fuel prices through subsidies to defuse public outrage as ordinary Kenyans express concerns over reduced cash flow, fewer employment opportunities and the rising cost of living.“The first and second stimulus packages were designed by my […]
