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Kenya plans $503 million economic stimulus

Christian Fernsby |
Kenya plans to spend 53.7 billion shillings ($503 million) on a stimulus package to support businesses that have been hit by the coronavirus pandemic, according to the National Treasury.

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Topics: KENYA   

The so-called post-coronavirus economic stimulus package will provide credit guarantees, loans to small businesses and help prop up tourist facilities, Treasury Secretary Ukur Yatani said in letter to parliament. Yatani told the legislature that President Uhuru Kenyatta approved the package, and asked lawmakers to amend his earlier 2020-21 budget proposals by adding the new provisions.

The Treasury doesn’t expect the stimulus program to affect the budget deficit, which it projects to decline to 7.3% of gross domestic product in 2020-21 from an estimated 8.2% in the year through June. The fiscal intervention will be funded through transfers from other items in the budget, financial aid and surpluses from state-owned corporations, according to Yatani.