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{
"id": 1000934,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1000934/?format=api",
"text_counter": 167,
"type": "speech",
"speaker_name": "Amb. Ukur Yatani",
"speaker_title": "The Cabinet Secretary, National Treasury and Planning",
"speaker": null,
"content": "fulfillment of the requirements of section 40 of the Public Finance Management Act, 2012 and Standing Order No.241 of the National Assembly. At the outset, allow me to take this early opportunity to express my sincere gratitude to His Excellency the President of the Republic of Kenya, Hon. Uhuru Kenyatta, for appointing me to the position of the Cabinet Secretary for the National Treasury and Planning to provide leadership in economic and financial affairs of the country. Hon. Speaker, allow me also to express my deep appreciation to the Chair and members of the Committee on Budget and Appropriations, Committee on Finance and National Planning as well as the Departmental Committees of the National Assembly for the constructive engagement and support in the review of the Financial Year 2020/2021 Budget Estimates and the financial measures. In February 2020, we submitted to this House the 2020 Budget Policy Statement. During that time, our financial projections assumed a normal operating environment. The economy was projected to grow at 6.1 per cent in 2020, which was an improvement from 5.4 per cent in 2019. Indeed, we had set on a conscious journey of fiscal consolidation targeting a lower fiscal deficit of 6.3 per cent of Gross Domestic Product (GDP) in the Financial Year 2019/2020, 4.9 per cent of GDP in 2020/2021 and, ultimately, 3.0 per cent of GDP over the medium term. This plan was premised on a strong revenue growth, reduction of non-core expenditures and a gradual slowdown in the growth of the public debt. Hon. Speaker, you may recall that early in the year, this House considered our proposals and approved our economic and financial strategies in the 2020 Budget Policy Statement. The global outbreak and the rapid spread of the COVID-19 pandemic has led to the contraction of the global economy with disastrous consequences. The pandemic and the attendant containment measures aimed at saving lives have disrupted the business environment, including international trade, leading to loss of livelihoods for millions of people globally. Kenya has not been spared. Evidently, the pandemic and the swift containment measures, including the closure of airspace and borders, curfews and cessation of movement in some counties, among others, have not only disrupted our ways of lives and livelihoods, but to a great extent business. These measures, including enforcement of basic hygiene and social distancing were not only necessary, but also timely as they have indeed stemmed a surge of infections and loss of lives. In addition to the adverse effects of COVID-19 pandemic, our economy also experienced two other shocks. First, the massive invasion of swarms of desert locusts that damaged crops. Secondly, the floods that led to loss of lives and livelihoods, displacement of people and destruction of infrastructure. Hon. Speaker, cognizant of the magnitude of the multiple challenges, particularly the COVID-19 pandemic, the Government has moved swiftly to intervene and implement a range of measures to mitigate the adverse effects. Overall, these measures have provided the much-needed relief to the economy through injection of cash and provision of additional disposable incomes to the people and businesses. The Government also lowered the Value Added Tax (VAT) rate from 16 per cent to 14 per cent, reduced tax rates for both corporate and personal income (PAYE) from 30 per cent to 25 per cent and provided 100 per cent tax relief for persons earning a gross monthly income of up to Kshs24,000. Further, in order to support the micro, small and medium enterprises, the turnover tax rate was lowered from 3 per cent to 1 per cent. To support the economy, the Government instituted various monetary policy measures to enhance credit access by the private sector at an affordable The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}