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{
    "id": 1031505,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1031505/?format=api",
    "text_counter": 49,
    "type": "speech",
    "speaker_name": "Hon. Uhuru Kenyatta",
    "speaker_title": "His Excellency the President",
    "speaker": {
        "id": 168,
        "legal_name": "Uhuru Muigai Kenyatta",
        "slug": "uhuru-kenyatta"
    },
    "content": "We also recognise and honour all other first responders, frontline staff and essential workers who have selflessly gone above and beyond the call of duty and ensured that the Kenyan flame continued to burn bright. Hon. Speakers, the COVID-19 pandemic began against the backdrop of a steady economic growth rate of 5.4 per cent in 2019. Our focus in implementing the Kenya Vision 2030 and its medium term plan dubbed “The Big Four Agenda” had been bearing fruit. As a result, most of the major economic sectors evidenced impressive growth last year, including manufacturing, agriculture, tourism and financial services. However, when it became apparent that the COVID- 19 pandemic threatened to erode the significant economic gains we had made in 2019 and the preceding years, on 25th March 2020, I announced State interventions to cushion Kenyans against adverse economic effects of COVID-19 pandemic that warranted the National Exchequer to forgo taxes amounting to Kshs176 billion annually. Those tax measures included: (i) The temporary suspension of the listing with the Credit Reference Bureaus (CRB) of any person, micro, small and medium enterprises and corporate entities whose loan accounts had fallen overdue or were in arrears; (ii) The immediate reduction of Value Added Tax (VAT) from 16 per cent to 14 per cent; (iii)100 per cent tax relief for all persons earning up to Ksh24,000; (iv) Reduction of Pay as You Earn (PAYE) from 30 per cent to 25 per cent; (v) Reduction of Corporation Tax from 30 per cent to 25 per cent; (vi) We also instructed that all Ministries were to pay approximately Kshs13 billion of the verified pending bills so as to improve liquidity in the economy and ensure that businesses remained afloat by enhancing their cash flows with the private sector also being encouraged to clear all outstanding payments owed within itself; (vii) The Kenya Revenue Authority (KRA) was directed to expedite the payment of all verified VAT refunds claims amounting to Kshs10 billion within three weeks or, in the alternative, allow the offsetting of Withholding VAT in order to improve cash flows for businesses; (viii) That Kshs6 billion from the Universal Health Coverage kitty was to be immediately appropriated strictly towards supporting counties and the recruitment of additional health workers to support in the management of the spread of COVID-19; (ix) The lowering of the Central Bank Rate (CBR) to 7.25 per cent from 8.25 per cent so as to prompt commercial banks to lower interest rates applicable to their borrowers and thereby availing the much needed affordable credit to micro, small and medium enterprises across the country; (x) The lowering of the Cash Reserve Ratio (CRR) to 4.25 per cent from 5.25 per cent so as to provide additional liquidity of Kshs35 billion to commercial banks in order to directly support borrowers that were distressed as a result of the economic effects of the COVID-19 pandemic; and (xi) That the Central Bank of Kenya was to provide flexibility to banks with regard to the requirements applicable to loan classification and provision of loans that were performing as at 2nd March 2020. In addition, my Administration, with the support of Parliament, further initiated an 8-Point Economic Stimulus Programme amounting to Kshs56.6 Billion. The major objective of the programme was to return the economy to the growth trajectory it was on pre-Corona by increasing demand for local goods and services, cushioning vulnerable Kenyans, securing household food security for the poor and creating employment and incomes. 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."
}