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{
"id": 1077234,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1077234/?format=api",
"text_counter": 94,
"type": "speech",
"speaker_name": "Amb. Ukur Yatani",
"speaker_title": "The Cabinet Secretary, National Treasury and Planning",
"speaker": null,
"content": "raised concerns about the general levels of poverty and inequality as well as the increased public debt. Hon. Speaker, at the outset, I wish to assure Kenyans that these concerns have been considered and I will be elaborating specific interventions later in this Statement. Hon. Speaker, as you recall, following the outbreak of the COVID-19 Pandemic in March last year, the Government instituted containment measures to curb the spread of the virus and save lives. To cushion Kenyans and businesses, the Government rolled out specific fiscal interventions including reduction of Pay As You Earn (PAYE) and corporate tax rates from 30 to 25 per cent, Value Added Tax (VAT) from 16 to 14 per cent and turnover tax from 3 to 1 per cent. The Government also offered 100 per cent tax relief to Kenyans earning below Kshs 24,000 per month. In addition, the Government enhanced cash transfer allocations to the vulnerable segment of our society including the emerging urban vulnerable. Hon. Speaker, the Government further implemented various monetary policy measures to enhance access to credit by the private sector. This included reduction of the Central Bank Rate from 8.25 to 7.0 per cent and lowering of the Cash Reserve Ratio from 5.25 to 4.25 per cent thereby injecting an additional Kshs 35.0 billion to the money market. Further, during this period, commercial banks were allowed flexibility with regard to the requirements for loan classification and provisioning. Hon. Speaker, to spur economic activities in the country, the Government implemented a comprehensive Economic Stimulus Programme, targeting activities in infrastructure, education, health, business liquidity, agriculture and food security, tourism, manufacturing, environment, water and sanitation. Hon. Speaker, in spite of these interventions, a lot remains to be done in order to deal with the challenges of unemployment among our youth as well as high poverty and income inequality levels that have been aggravated by the COVID-19 Pandemic. Our rallying call in this year’s Budget is therefore, job creation through continued and sustained economic growth. To strengthen this position, we shall implement a comprehensive economic recovery strategy that will expand economic activities and address these challenges. Hon. Speaker, the private sector remains key to employment creation and poverty reduction in the country. In order to expand the scope and pace of policy interventions and enhance access to credit by businesses, the Government established the Credit Guarantee Scheme to de-risk lending to the micro, small and medium enterprises. Hon. Speaker, the plight of the vulnerable in our society, particularly the emerging urban vulnerable, remains a key concern for our Government. In order to cushion this particular group, the Government will enhance cash transfer allocations and institute other targeted interventions in this Budget. Hon. Speaker, the COVID-19 Pandemic has triggered one of the worst health and economic crisis of our time. The pandemic overstretched our health systems, and in line with the advisory of the World Health Organization (WHO), the Government implemented appropriate interventions to save lives. The response has undoubtedly strengthened our health care system through provision of necessary medical supplies, installation of modern equipment, and deployment of more health personnel. In addition, in March 2021, the Government launched the National COVID-19 vaccination programme initially targeting the frontline workers and other highly vulnerable groups. As at end May, 2021, about one million persons had received the first COVID-19 vaccine dose. In order to facilitate further roll-out of vaccines to create herd immunity, we propose to 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."
}