Connect with us

Business News

Yatani allocates Sh20.5bn to manufacturing to promote local industries

Published

on


NAIROBI, Kenya, Jun 10- The National Treasury has allocated Sh20.5 billion for the manufacturing sector for the financial year 2021/2022, one of the areas that has remained a key priority to budgetary funding.

The government said it aims to support value addition and raising share of manufacturing to GDP to 15 percent by 2022.

Treasury Cabinet Secretary while issuing the country’s spending plan for the new financial year said the monies will be used to promote local industries as the government aims to scale up reforms to boost the sector.

“To support and protect local industries I have proposed an allocation of Sh20.5 billion shillings under the various implementing ministries department agencies,” said Yatani.

“Out of the monies allocated to the sector Sh1.4 billion has been directed to Kenya Industry and Entrepreneurship project; Sh0.5 billion for Development of various SMEs; Sh0.8 billion for Kenya Youth Empowerment and Opportunities Project,” the CS added.

According to the CS, some Sh2 billion will go to  Credit Guarantee Scheme to enhance access to affordable credit by MSMEs, Sh350 million for development of SEZ Textile Park in Naivasha, Kenanie leather Industrial Park and Athi River Textile Hub; Sh8.3 billion for Dongo Kundu Special Economic Zone; Sh59.2 million modernization of cooperative cotton ginneries; Sh130.2 million for the Modernization of RIVATEX; and Sh210 million coffee industry revitalization.

Manufacturing has been considered a ‘legacy’ agenda under President Uhuru Kenyatta’s big four projects.

The sector has since been amongst key budget beneficiaries in the previous years.

The projects have however remained under criticism with the Budget and Appropriations Committee citing that projects such as Universal Health coverage, Affordable Housing, Food and Nutrition will not serve its agenda by 2022.

Advertisement. Scroll to continue reading.

The committee, therefore, recommended that the fourth medium-term plan of Vision 2030 should include the completion of the projects.



Source link

Comments

comments

Advertisement
Loading...
Loading...

Facebook

Loading...

Trending

Kenyan Digest