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{
"id": 1000935,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1000935/?format=api",
"text_counter": 168,
"type": "speech",
"speaker_name": "Amb. Ukur Yatani",
"speaker_title": "The Cabinet Secretary, National Treasury and Planning",
"speaker": null,
"content": "cost. This was achieved through reduction of the Central Bank of Kenya (CBK) Rate from 8.25 per cent to 7 per cent and lowering of the Cash Reserve Ratio requirement from 5.2 per cent to 4.25 per cent. Consequently, this intervention released Kshs35 billion to commercial banks, thus allowing their flexibility with regard to requirements for loan classification and provisioning. Indeed, since March 2020, banks have restructured loans in excess of Kshs360 billion, including Kshs190 billion of personal loans. Further, Hon. Speaker, listing with the Credit Reference Bureau (CRB) of any persons, micro, small and medium enterprises and corporate entities whose loan accounts fall overdue or are in arrears was temporarily suspended. In addition, in order to enhance liquidity for business, the Government provided Kshs13.1 billion to settle verified pending bills owed by ministries and departments and a further Kshs10 billion for payment of verified VAT refund claims. To cushion the vulnerable in our society, particularly the emerging urban vulnerable, the Government has provided an additional Kshs10 billion to boost the ongoing traditional cash transfer programme. Similarly, the Government has allocated Kshs1 billion to recruit health workers to strengthen the human capital capacity for the Ministry of Health, while allocating Kshs400 million for food and non-food commodity for affected households. Hon. Speaker, the Government has also established the COVID-19 Emergency Response Fund to receive voluntary contributions from well-wishers towards defraying expenses associated with this pandemic. To gainfully engage with our youths, the Government has rolled out the KaziMtaani Programme designed to improve public hygiene standards and undertake urban civil works. Already, 26,000 youths are engaged in the pilot phase. To further cushion citizens and businesses from the adverse effects of COVID-19 pandemic and to stimulate the economic activities going forward, His Excellency the President, on 23rd May, 2020, unveiled an eight-point economic stimulus programme. I will be elaborating on the economic stimulus programme later in this Statement. Hon. Speaker, over the last few months, revenue collections shrunk considerably due to slowed economic activities attributed to the COVID-19 pandemic. Conversely, there was rise in public expenditures to address the targeted interventions. In light of this, the Government reached out to multilateral and bilateral development partners for additional financing. Indeed, the response from development partners was prompt and generous. A number of them provided assistance in form of grants, highly concessional funds and personal protective equipment. Hon. Speaker, allow me to highlight some of the significant financial assistance that Kenya has received from multilateral partners. First, the country received Kshs78.3 billion under the Rapid Credit Facility of the International Monetary Fund to help address the impact of the COVID- 19 pandemic. This financial support is fully concessional at zero interest rate. Secondly, we received Ksh108.0 billion from the World Bank under the Second Development Policy Operation as both budgetary support and extra resources to help fight the pandemic. At the initial phase of the COVID-19 outbreak, the World Bank extended support of Kshs6.8 billion under the Contingency Emergency Response to the Ministry of Health for prompt preparations and response. The Government has also received Kshs22.5 billon from the African Development Bank as a concessional loan, and additional Kshs7.5 billon commitments from the European Union in form of grants. With this support, we will not only strengthen our health care system with the requisite equipment, supplies and medical personnel to respond to the pandemic, but also fund other critical interventions in the Budget. We express our sincere gratitude to our bilateral development partners and multilateral institutions for standing with us during this challenging time. 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."
}