If this stimulus works tanga tanga in Mt Kenya will be buried na ifunikiwe slab

President Uhuru Kenyatta Tuesday unveiled a multi-billion shilling economic stimulus package to jump-start the economy and pacify his political base after the amount of cash in Kenyans’ pockets dropped to a four-year low.
The stimulus package will mainly seek to widen the market and offer better produce prices to tea, coffee, milk, rice and potato famers, sub-sectors that are critical in putting money in peoples’ pockets that is needed to boost other sectors via improved purchasing power.
Latest Central Bank of Kenya (CBK) data shows that the cash circulating outside banks dropped to Sh176.9 billion in September — the lowest since September 2015.
The record low cash in circulation comes in a period when the economy has faced a cash crunch that has been reflected in job cuts, stagnant wages for employees and a slowdown in businesses and output.
Mr Kenyatta promised to focus on the economy in the next few months, acknowledging that many people have been complaining of severe hardships in recent years.
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Official data shows the economy grew by 5.1 percent year-on-year in the third quarter of 2019, compared with 6.4 percent in the same period in 2018.
The choice of key cash crops in Mr Kenyatta’s bailout suggests the President is keen to calm the restive Mount Kenya and Rift Valley regions—his political bedrock—that has suffered the brunt of the sluggish economic activity and reduced cash in circulation.
The bulk of Kenya’s tea, coffee, milk, rice and potatoes are produced in those regions—which accounted for the bulk of Mr Kenyatta’s votes in 2013 and during his re-election in 2017.
Yesterday, Mr Kenyatta initiated a Cabinet reshuffle amid a growing power struggle between the President’s allies and those of his deputy, William Ruto, who considers himself the heir apparent.
Mr Kenyatta had said during the last election that he would support Ruto in 2022, but is growing closer to veteran opposition leader Raila Odinga.
“My second intent for the year is to increase the money in the pocket of the farmer,” Mr Kenyatta said in a televised address.
“I am also directing action to increase the revenues to the farmer as opposed to the middlemen and brokers.”
The President ordered the immediate release of Sh1.075 billion to the State-backed New KCC where it will use half a billion shillings to buy excess milk from farmers and convert the produce to milk powder.
The milk processor will use the remaining Sh575 million to enhance the processing capacity of its Nyeri and Nyahururu plants.
Dairy farmers have been complaining of falling raw milk prices in a market dominated by Brookside, which is majority owned by the Kenyatta family.
“To protect our milk producers from illegal imports, I have directed the National Treasury to impose a 16 percent VAT on milk products originating from outside EAC,” said Mr Kenyatta.
The Treasury will also provide Sh600 million to the Kenya National Trading Corporation to buy excess rice from farmers in Mwea and Kano, which will be sold to the military, police and schools.
Mr Kenyatta directed the rollout of the Sh3 billion Cherry Advance Revolving Funds, which offers coffee farmers advance payment ahead of harvesting, within 30 days, potentially boosting the cash flow of thousands of farmers.
Potato and banana farmers in Nyandarua, Meru and Kisii will benefit from a Sh300 million package for building cold storage facilities.
Radical measures are targeted at the tea sector, including removing middlemen from the sale of green tea, a fund to cushion farmers from price fluctuations and offering a minimum guaranteed price to the growers.
Mr Kenyatta called for the restructuring of the Kenya Tea Development Authority (KTDA) including eliminating directors’ conflict of interest, arguing that the governance breaches had worked to deny farmers their rightful share.
“As a result of poor corporate governance, farmers who would be earning about Sh91 per kilo of tea are currently earning about Sh41,” said Mr Kenyatta.
Poor weather also helped to curb faming activity in what affected other auxiliary sectors, especially agro-processing.
This is reflected in the fact that three of the six firms listed in the agricultural counters at the Nairobi Securities Exchange (NSE) have issued a profit warning for the financial year ended yesterday.
Agriculture accounts for 34 percent of the country’s Sh8.9 trillion gross domestic product and employs the bulk of Kenyans.
Kenyans are increasingly concerned over mounting debt, sluggish revenue growth, a slowdown in output and job losses.
Companies are struggling with reduced sales and profits in a soft economy that has persisted since 2017 when Kenya went through a bruising General Election followed by a repeat presidential election.
Key firms have put on hold hiring of new staff in an economy that has also witnessed a string of job losses in recent months affecting nearly all sectors, a development that has worsened Kenya’s economic situation and cut the flow of cash.
“We must use politics to shift the economy and indeed to address the plight of the most vulnerable members of our society,” Mr Kenyatta said.

https://www.businessdailyafrica.com/news/Uhuru-unveils-bailout-to-calm-political-base/539546-5418736-1vx0auz/index.html

Ruto can now only pray that the stimulus does not work which would make him a very evil person and unfit to be president .Double edged sword

Looks like this TangaTanga vs BBI is reaping rewards for mwanainchi. Wacha waendelee kupigana like 2 bulls in a kraal

Its one thing to say things for airplay,its a whole different ball game when it comes to actualization.

Stimulus package targeting his people, forgetting kenya belongs to all regions, sasa ukiconcentrate na farmers wa central, unajua other areas hawatakuwa na purchasing power kununua io bidhaa ya farmers w Central? Shughlikia economy yote, otherwise kuhara hakusitishwi na kuweka kifuniko kwa kundu

Not familiar with trickle down economics are you?

You cannot solve structural issues with stopgap measures like mopping up excess produce, take the dairy sector for instance which produces long life milk at the highest cost in the region, we cannot export excess produce despite there being demand for it, at 33bob per litre there is very little profit for farmers given the price for both unprocessed which ranges between 60-70 and processed at 100-140, daylight robbery!

Coffee and tea trade have deeply entrenched cartels which must be dismantled, from his many declarations in the fight againt terrorism and the corruption one Uhuru Kenyatta performs rather poorly in terms of seeing shit through, 7 years after he took power he is still lamenting about cartels in his administration, all bark, no bite!

This economy needs surgery and reconstruction not bandages here and there, ESPs wont work.

Hio maneno ya region wacha.Most of Central has been developed by their own and has been marginalised in terms of development.
Other regions have RDA’s ( Regional Development Authorities) like Labda,TARDA,EwasoNgiro, Coast Development e.t.c . This RDA’s are allocated tens of billions every year to develop their region. e.g The LBDA recently put a huge (3.5 billion White elephant)mall in kisumu. Instead of dealing with floods,lake Victoria issues etc…they saw it fit to build a huge mall.At least they have a Regional Development Authority -they can do what they want with it.
Ukienda Western Sugar farmers are bailed out karibu kila mwaka,same with akina Rivatex et.al.
Devolution also came with 'equalization" chieth…so, counties like Turkana(on top of their Ewaso Ngiro North development chieth) are allocated more than for example Kiambu…

Currently Brookside is bigger than KCC, if so why should Munya direct KCC to buy milk from farmers at 33 shillings per litre while not demanding the same from Brookside which collects from many more farmers at very exploitative prices?

Arent you the same guys who were complaining that central kenya hakuna has been neglected? He even called guys washenzi for accusing him of taking development to other parts of the country. Anyway, kitaeleweka. Watch this space.

Kama za Lazarus and the rich man?

Upatie rich man minofu

Atafune atupie maskini mabakshishi

Wacha zako!!!

Kwani western Na north eastern Kuna hizo development authorities?

Check amount allocated to bail sugar

Then compare that Na ya coffee

Remember the counties in mount Kenya region have more funds allocated to them on the roads sector than the entire western,nyanza and coast combined!!!

Clearly you have never been past the village u were born…Tuseme ukweli these regions you have mentioned have been marginalized for years. Central region generally enjoys more financial incentives and economies of scales as compared to these regions. For christ sake you people have had 3 presidents from the same region, you are the most economically empowered Kenyans. Kitambo you guys used to get interest free loans from Equity. Ni wakati wetu pia wa kukula nyama sheenji type

N

North Eastern I can count 3.
NEDI- multi billion (ksh 100+ billions)
Lappsett corridor development authority
They are part of Ewaso Ngiro North

Of cause It won’t work. No money in our coffers. Mind you this year onwards a chunk of SGR loan is being repayed.

Then that little issue of huge pending bills everywhere bado hazijalipwa.

Hii yote ni lip service. Like usual

No money from treasury to trickle down.

Public schools are yet to receive their package this term.

Hii yote ni porojo kama ile ya fighting corruption

Exactly;
Buda hii Maisha ni kuelewa kwamba there exists the ruling class, middle class na working class.
Hizo dynamics hazitawahi badilika Ata na dawa, kutoka hapo unapambana na Hali yako.

Maneno ya mavillage wachana nayo, been to three continents but that doesn’t mean shiett right now. I maybe shineeey but I never grew up in Central, neither did my folk because they(and their parents) were kicked out of central by the first government.(and kinyatta 1 and the homegaurds kept a big chunk of central to themselves)

Kenya has had the following regimes. Jubilee, kibaki, Mo1 and The Colonial Government. The colonists developed Central more in comparison to other regions.
The “you’ve had 3 presidents line” is a myth. E.g Gatundu might have had two presidents but it has poorest , the most jigger infested kuchapa kyuks,coupled with an alcoholism epidemic wacha tu…
Kibaki brought much needed infrastructure development to a region that had been marginalised by Mo1 regime for decades.But, he also did it for the rest of Kenya too.
The kenyattas have never had the best interest for Central as a region.They have always wanted and always will want to Lord over poor people.To use as a bargaining chip and dicsard them (at will)
Other than Kibaki, The colonialists, Kenyattas and Mo1 had the “fuck Central”( under-coverish)

Ata huko majuu,there are White’s that are sooo poor and have been shafted proper by subsequent governments that their only consolation is that “at least I’m not a nigger/black”…huko central kuna wengi sana wanaishi na ufukara (and many lost forever to liqour) due to actions/lack of action by those three governments the rest of Kenya claims they(central people) have been in…

this one reads just like the manifesto they had in 2013 and 2017, even if its targeted at the mount kenya region as claimed above, its still too late, the other day I went to nyahururu and the road from gilgil to nyahururu is just poor, met guys filling in the potholes with soil wakiomba payouts from drivers, very surprised at that.