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{
    "id": 662123,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/662123/?format=api",
    "text_counter": 154,
    "type": "other",
    "speaker_name": "",
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    "content": "notwithstanding those achievements, a lot remains to be done in order to decisively deal with the challenges of unemployment, poverty and inequality. Our target to generate 1 million new jobs remains. In 2016, we target to grow by 6.0 per cent and by 7.0 per cent in the medium term. This level of growth will continue generating new jobs and creating economic opportunities for our young men and women graduating from various institutions. The faster we grow above this level on a sustainable basis, the more chances we have of putting a dent on poverty because many more of our youth who are entering the labour market will be more easily absorbed. Kenya has established a strong track record of macro-economic stability and this Budget underscores our commitment to sustain this effort going forward. In this regard, we shall continue to implement prudent financial and monetary policies in the context of weakened global economy, lower commodity prices and pressure in our exchange rate as the United States (US) continues to tighten monetary policy by raising interest rates. As a result of prudent fiscal and monetary policies, inflationary pressures were contained to 5 per cent in May, 2015. There has been a steady decline in short term interest with the 91-day Treasury bill rate at 7.5 per cent in early June. We will continue to maintain low and stable interest rates going forward. The current account deficit has narrowed due to lower oil import bill, improved earnings from tea and horticulture exports and strong Diaspora remittances. The deficit was estimated at 6.8 per cent of Gross Domestic Product (GDP) in 2015, a reduction of 3 per cent points from 2014. It is expected to narrow further in 2016. The exchange rate to the US$ dollar has remained stable exchanging at about Kshs100. Our foreign exchange reserve is at US$7,688.3 equivalent to 5 per cent of months of import cover. This should serve as a buffer to any potential external shocks but, because we live in a vulnerable world, we need further cushion to protect our economy against shocks as we implement our economic programmes. For this reason, the International Monetary Fund (IMF) approved in March this year, a two-year precautionary programme for Kenya totalling US$1.5 billion. This support from the international community is a clear indication that we are doing the right things and that they have confidence in the way we are managing our economy. Those resources with the strong foreign exchange reserves are readily available in the event that Kenya faces severe internal or external shocks. We are well positioned to continue implementing our transformative economic agenda without any major risk of external shocks because we are adequately insured. I want to turn to the sectorial policies and expenditures. The rest of my Statement will cover the progress made in various strategic areas in our development plan and expenditure allocation, the fiscal projections for 2015/2016 Financial Year, and conclude with the tax and other policy measures contained in the Finance Bill that I have submitted today. I will start with modernising security. We are part of the global community and are susceptible to various security challenges, including terrorism and radicalisation of a few of our young men and women. We have done a lot in the area of security and more will be done. People in Nairobi and Coast may have by now noticed the surveillance cameras installed in strategic points and roads. This security surveillance system provides real time footage to the National Police Operations Centre enabling security agents to monitor and detect crime. We have also heavily invested in street lights in major cities and towns. We are now reaping significant dividends from our investment in this sector. A testimony of this development is a comment by Mr. Gichana from Nairobi, who said that officers will no longer be blindly sent to the scenes of incidents as specific locations will be identified using Global Positioning System (GPS), thus 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."
}