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{
    "id": 1438653,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1438653/?format=api",
    "text_counter": 141,
    "type": "speech",
    "speaker_name": "Prof. Njuguna Ndung’u",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "a new monetary policy implementation framework. This is based on inflation targeting and introduces an interest rate corridor around the Central Bank rate. The inter-bank rate is expected to be within this corridor. In addition, the Central Bank of Kenya launched the DhowCSD, a Central Securities Depository infrastructure that delivers a world-class level of registry, custodial and settlement services for both primary and secondary market operations. I wish to encourage Kenyans and investors to take advantage of the DhowCSD to invest in risk-free Treasury bills and bonds in order to grow their wealth and secure their financial future. We have simplified the DhowCSD, and investors can simply use the USSD *866# to log in and invest in a retail bond for amounts as low as Ksh600. This will be launched to make investments in Government securities all- inclusive and include the bottom of the pyramid. The strong economic fundamentals, together with renewed investor confidence, are a signal for accelerated broad economic growth and the creation of jobs for our youth. In 2023, the total new jobs generated in the economy increased from 848,200 jobs compared to 816,600 new jobs generated in 2022. This is attributable to policies implemented especially on affordable housing and the agricultural sector intervention. Looking ahead and considering the ongoing reforms and additional measures the Government is introducing through the Budget Statement, we project our economy to grow at 5.5 per cent in 2024 and 2025. This strong growth will be supported by ongoing interventions under the Bottom-Up Economic Transformation Agenda (BETA). In this regard, the Government will accelerate investment in human capital development and capital accumulation; market development, protection and regulation; domestic resource mobilisation; reforming and restructuring Government institutions and, finally, digitisation to usher and era of efficiency in economic management to support economic recovery. In order to safeguard macro-economic stability and protect the fragile economic recovery, monetary and fiscal policies will remain very prudent. The Central Bank of Kenya will ensure the inflation rate remains within the target while maintaining a competitive exchange rate and stable interest rates. The Central Bank is further expected to safeguard the improvements in the functioning of the inter-bank foreign exchange market and apply all instruments to strengthen the monetary policy transmission mechanism. On the other hand, the fiscal policy stance over the medium term aims at supporting the Government's BETA by delivering a strong fiscal consolidation, with the fiscal deficit declining from 3.3 per cent of GDP in the Financial Year 2024/2025 from a high of 5.7 per cent GDP in the Financial Year 2023/2024. This will improve the primary surplus to 2.3 per cent of GDP in the Financial Year 2024/2025 from a primary deficit of 0.4 per cent in the previous year. I will later in this Statement elaborate on policy measures to deliver a strong fiscal consolidation. This economic outlook is not without risks. We continue to witness external shocks and the recurrence of extreme weather effects that not only affect economic activities, but also pose major fiscal risks. The Government will take appropriate interventions to cushion the economy from those risks. Hon. Speaker, let me now expound on the policy priorities of the Government to promote economic transformation and improve the livelihoods of Kenyans. First, BETA will strengthen economic recovery. The Government will accelerate the implementation of policies, programmes, projects and interventions in BETA to: 1. enhance agricultural transformations; 2. support micro, small and medium-term enterprises; 3. provide affordable housing and settlement; 4. achieve universal health care; and, 5. support growth of the digital superhighway and creative economy to support job creation. 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."
}