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{
    "id": 1254142,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1254142/?format=api",
    "text_counter": 93,
    "type": "speech",
    "speaker_name": "Prof. Njuguna Ndung’u",
    "speaker_title": "The Cabinet Secretary, National Treasury and Economic Planning",
    "speaker": null,
    "content": "Already, inflationary pressures are easing with the inflation rate at 8.0 per cent in May 2023 from the high of 9.6 per cent in October 2022. The inflation rate is expected to return to the target range within the second quarter of the Financial Year 2023/2024. Credit to the private sector grew by 13.2 per cent in the 12 months to April 2023, supporting economic activity. Most sectors of the economy continue to receive positive credit flows. Hon. Speaker, to further anchor inflation expectations, the Central Bank of Kenya (CBK) will continue to implement the reforms outlined in the White Paper on Modernization of the Monetary Policy Framework and Operations that are aimed at enhancing the effectiveness of monetary policy formulation and implementation to prevent monetary policy falling behind the curve. These reforms include refining macroeconomic forecasting frameworks in line with the changing structure of the economy, improving the functioning of the interbank market to strengthen monetary policy transmission and continued improvement of communication on monetary policy decisions. Hon. Speaker, the fiscal policy stance over the medium-term aims at supporting the Government’s Bottom-Up Economic Transformation Agenda through a growth friendly fiscal consolidation plan designed to slow down the annual growth in public debt and implement an effective liability management strategy, without compromising service delivery to citizens. This will improve the country’s debt sustainability position. Hon. Speaker, I now turn to the policy priorities of the Government for fostering economic transformation and improved livelihoods. The policy priorities and structural reforms for improved livelihoods start with Bottom-up Economic Transformation Agenda. This year’s Budget places special emphasis on priorities under the Bottom-up Economic Transformation Agenda which is detailed in the 2023 Budget Policy Statement (BPS) that was approved by this House in March 2023. This Agenda is premised on the need to address the challenges that the economy is facing, stimulate economic recovery, bolster resilience while building on successes realised over time. The strategy will involve increasing investments in at least five sectors envisaged to have the largest impact and linkages to the economy, as well as on household welfare. The priority programmes are classified under two categories, namely, the core pillars and the enablers that aim at the creation of a conducive business environment for socio-economic transformation. Hon. Speaker, as indicated earlier in this Statement, the core pillars include: agricultural transformation; Micro, Small and Medium Enterprise (MSME) economy; housing and settlement; healthcare; and digital superhighway and creative Industry. In order to make these programmes feasible, the Government will implement strategic interventions under the following key enablers: infrastructure; manufacturing; blue economy; the services sector, environment and climate change; education and training; women agenda; youth empowerment and development agenda; social protection; sports, culture and arts and governance. Hon. Speaker, in order to realise the aspirations of the Bottom-up Economic Transformation Agenda, the Government will: 1. Continue to maintain macroeconomic stability and enhance security to foster a secure and conducive business environment for all Kenyans and their investments; 2. Intensify national infrastructure development and connectivity in roads, rail, port, energy and fibre optic infrastructure to lower the cost of movement of people and goods, lower the cost of doing business, thereby, enhancing profitability of businesses; 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."
}