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Budget statement 2022/23 projects Economy to stabilize at 6.0 pc

The budget statement of 2022/23 has projected that the economy will stabilize at 6.0 percent in 2022.

According to the statement the economy is also estimated to have recovered by 7.6 percent in the year 2021 from a contraction of 0.3 percent in 2020, despite Covid-19 restrictions.

Addressing the National Assembly, Treasury Cabinet Secretary Ukur Yatani, said that following the easing of Covid restrictions, reopening of the economy, targeted stimulus intervention by government, the economy registered a strong recovery of 9.9 per cent in the third quarter of 2021.

In the nation’s budget statement, which is the last for President Uhuru Kenyatta’s government, Yatani assured that the government will continue to implement and expand the economic recovery programme in order to accelerate the economy and improve Kenyans’ livelihoods.

He said the outlook will be reinforced by the ongoing implementation of the strategic priorities of the government under the “Big Four” Agenda and the interventions under the third Economic Stimulus Programme.

“The economy continues to record remarkable macroeconomic performance with inflation remaining within target range and short-term interest rates remaining low and stable while lending to the private sector has been strong,” he stated.

The CS outlined some of the government achievements under the third Economic Stimulus Programme (ESP) as infrastructure development, rehabilitated access roads and footbridges to optimize the use of local labour and materials, which he noted generated over 200,000 jobs for the youth under the “Kazi Mtaani” Programme.

He said in a bid to improve the education sector, the government constructed additional classrooms in primary and secondary schools, and recruited 1,000 contract teachers and 1,000 ICT interns to support digital learning in public schools.

Yatani noted that to foster socio-economic development and provide solutions to the various problems facing Kenyans,Sh 146.8 billion has been allocated to support implementation of priority programmes under the “Big Four” Agenda, in various Ministries, Departments and Agencies:

Other achievements Yatani said, included the completion of Nairobi to Naivasha standard gauge railway line, construction of 4,795 kilometres of new roads, maintenance of 110,625 kilometres of roads, completion of second container terminal at the Port of Mombasa, and completion of Lamu and Kisumu Ports.

The CS also noted that Sh69 billion has been allocated to support Equity, poverty reduction, women and youth empowerment whereas Sh15.6 billion has been allocated to improve access to digitized services across the country.

Primary schools have increased from 26,549 to 32,437 and secondary schools from 7,174 to 10,413 between 2012 and 2020.

Yatani also revealed that the government is undertaking a review of the legal and regulatory framework to address emerging issues in the capital market space.

“The National Government has continued to support the county governments to ensure that devolution succeeds. In the FY 2022/23, county governments have been allocated Sh407.0 billion,” said Yatani.

By Catherine Muindi

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