President Uhuru Kenyatta addressing MPs during the State of The Nation Address on Tuesday November 30, 2021/ PSCU
President Uhuru Kenyatta in his address to Parliament on Tuesday November 30, 2021 underlined a focus on revitalising and shielding the recovering economy from the negative impact of the Covid-19 pandemic.
The President noted that his administration has no immediate plans to lock down the country again despite rising global fears over the new Covid-19 variant (Omicron), in a major relief to the economy ahead of the festive season.
Since the first Covid-19 case was reported in the country on March 13, 2020, the government introduced a number of measures including lockdowns and curfews, a period that ushered in layoffs and pay cuts as firms grappled with dwindling sales due to the restrictions.
Kenya’s GDP growth slid to negative 0.3 percent last year from 5.0 percent in 2019 as the impact of the pandemic on key sectors such as tourism saw economic output contract for the first time in nearly three decades last year.
During his speech, the President noted that the country’s economic growth was turning around, recording a 10.1 per cent growth during the second quarter of 2021.
“This is the highest growth ever recorded in one quarter in Kenya’s history. It is also the first time Kenya has hit double-digit growth. The last time Kenya’s economy got close to this kind of performance was in 2010 during the Grand Coalition Government when the economy hit an 8.4 percent growth rate,” he said.
“My administration has secured an impressive economic acceleration, including doubling our GDP from Sh4.74 trillion to Sh11 trillion,” The President added.
He also lauded the Kenya Revenue Authority for increased efforts in tax collection, having racked up Sh1.67 trillion in 2020, surpassing it’s projected target of Sh1.52 trillion in tax collected.
“In the last 8 years, KRA has collected Ksh.10.8 trillion cumulatively in revenue. In just 8 years, KRA has collected the equivalent of Kenya’s total GDP. It also means that on average KRA collected Ksh.1.3 trillion every year,” the President stated.
President Uhuru Kenyatta addressing MPs during the State of The Nation Address on Tuesday November 30, 2021/ PSCU
The country lifted a nationwide curfew in October this year that had been in place since March 2020 to curb the spread of the coronavirus.
Many of the stringent measures doled out to help curb the spread of the Covid-19 virus have since been eased. The President said making the decision between lives and livelihoods presented his administration with an impossible choice.
“One side of the divide presented an economic argument. They wanted us to leave the country ‘open’ and save the economy. They argued that Covid was a health crisis that should not trump economic imperatives,” he said.
“The other side of the divide made a compelling health argument against the economic argument. Led by a brain trust of medical scientists and researchers, they argued that the country had no option but to lockdown…After much reflection, my administration opted for the public health argument over the economic argument.”
He used Tuesday’s address to mostly outline his legacy projects, including improvements in infrastructure such as new roads and highways, and a new port.
President Kenyatta said his administration has so far built 10,500 kilometres of roads, connected more households to electricity, supported devolution, improved access to health and education and enhanced the capacity of security agencies.
“We have also made Big Push Investments that have spurred development, revived dead capital, and boosted entrepreneurship. We have also restored dignity to our people through water and sanitation, healthcare, education, and security reforms,” he said.
The President is betting on an accelerated vaccination plan in the coming months to preclude the need for further drastic Covid containment measures such as lockdowns and a night curfew that slowed down the economy last year.
