The government has projected a significant loss in revenue in the wake of the coronavirus pandemic.
Speaking Tuesday, Treasury CS Ukur Yatani said though they had projected a 6% GDP growth, the projection has been reviewed downwards and will likely drop to less than 3%.
As a result of the recent mitigative measures that were put in place, the government has projected a loss of Sh172 billion in revenue. Yatani said the government will be losing Sh60 billion per month for the next three months.
“For us to be able to manage the situation, we shall reallocate funds from the sub development projects to allow us to have a financial flow to deal with the pandemic,” he said.
“It is evident that revenues are going to shrink. Countries are now revising their growth projections downwards and Kenya is not an exception.”
Speaking when he received a Sh2 billion cheque from the Director of Public Prosecutions Noordin Haji, Yatani said the amount under the Coronaviris Emergency Respond Fund will go a long in supporting the most vulnerable in the society.
“We have been receiving outrageous proposals from the committees put in place and looking at the figures, they are far beyond our imagination,” he said.
Yatani noted that the reduction of the Value Added Tax should provide relief to the citizens as prices for essential commodities are expected to drop.
He called on the business community across the country to have compassion and ease the burden on citizens.
“We understand the pandemic is really hitting hard on the ordinary citizens, as the government explores the best ways to prevent its citizens from the economic shocks, those in the business sector should also try and have some understanding of the situation,” he said.
Yatani added that disbursement of funds to the counties will continue.
“So far all the counties that have requested for the funds we are in the process of ensuring that the money is released to them in good time,” he said.