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{
    "id": 1077236,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1077236/?format=api",
    "text_counter": 96,
    "type": "speech",
    "speaker_name": "Amb. Ukur Yatani",
    "speaker_title": "The Cabinet Secretary, National Treasury and Planning",
    "speaker": null,
    "content": "cent from 5.4 per cent in 2019. Economic growth is expected to rebound to 6.6 per cent in 2021. This recovery reflects the lower base of 2020 when most service sectors were adversely affected by the closure of the economy thus recording negative growths. The outlook in 2021 will be reinforced by the prevailing stable macro-economic environment and the ongoing implementation of the strategic priorities of the Government under the “Big Four” Agenda and Economic Recovery Strategy. Weather conditions are expected to be favourable thus supporting agricultural output. As a result, export of goods and services will expand as global demand normalises. Over the medium term, the economy is expected to remain resilient and grow at a rate above 6.1 per cent. This growth outlook is affirmed by recent surveys by the Monetary Policy Committee revealing a general optimism about economic growth prospects. In addition, the recent IMF Mission to Kenya noted that economic recovery is underway and estimates economic growth consistent with our projections. To support this growth outlook, we shall continue to maintain macro-economic stability. Inflation, which stood at 5.9 per cent in May 2021, is expected to remain within a target range of 5 per cent with a margin of 2.5 on either side, supported by prudent fiscal and monetary policies. Interest rates will be expected to remain low and stable thus supporting the growth of private sector credit. The balance of payments is also expected to be strong with the current account balance projected to remain at 5.2 per cent of GDP. Further, the rebound in horticulture and tea exports as well as increased inflows of remittances will support the build-up of adequate levels of official foreign exchange reserves thus creating buffers against short-term shocks in the foreign exchange market. Hon. Speaker, the aforementioned economic outlook may be affected by emerging domestic and external risks. The emergence of new COVID-19 variants could lead to reinstatement of containment measures disrupting, among others, trade and tourism. In addition, adverse weather conditions could lead to lower agricultural output. Further, increased public expenditure pressures, particularly wage demands could put a strain to the fiscal space. The Government will continue to monitor these developments and take appropriate policy interventions to safeguard the economy where the risks do materialise. Having outlined the economic policy context for this Budget, we have carefully reflected on a theme that would resonate with our strategies to protect lives and livelihoods during this period of COVID-19, cushion the vulnerable and support economic recovery for employment creation and poverty reduction. In this respect, we have framed the theme for this Budget as “Building Back Better: Strategy for Resilient and Sustainable Economic Recovery and Inclusive Growth.” The next section of my Statement will give highlights of the policy priorities of the Government and the strategy for economic recovery. I will later provide highlights of the fiscal framework underpinning this Budget, spending priorities and the proposed tax policy measures. The implementation of the “Big Four” Agenda remains a high priority and critical to economic recovery. In this regard, the Government will fast-track the implementation of programmes and projects under the “Big Four” Agenda to enhance food and nutrition security, achieve universal healthcare, provide affordable housing, and support the growth of the manufacturing sector for job creation. The Government will also undertake the following targeted strategic interventions to achieve a resilient and sustainable economic recovery: 1. Maintain macro-economic stability and enhance security to foster a secure and conducive business environment and security of Kenyans and their properties. 2. Scale up development of critical infrastructure in the country such as roads, rail, energy and water to reduce the cost of doing business and ease movement of people and goods as well as promote competitiveness. 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."
}