Treasury disburses Sh18 billion for Covid-related expenditures

Treasury has so far disbursed Sh18 billion to be used in Coronavirus-related interventions.

Treasury CS Ukur Yatani (pictured) said the money has been released to boost the health sector, dig boreholes in slums and fund cash transfers to the elderly and other vulnerable groups.

The disbursement is part of a Sh40.3 billion war-chest to be spent on addressing the adverse impacts of coronavirus pandemic.

According to the CS, more money is expected to be released today with the passage of a supplementary budget.

Treasury has allocated Sh13 billion to pay pending bills to small businesses and directed the Kenya Revenue Authority (KRA) to release tax refunds amounting to Sh10 billion. Some Sh10 billion has been released to fund a cash transfer programme for the elderly.

On Wednesday, Parliament passed a Tax Laws (Amendment) Bill, 2020 paving way for employees earning a monthly salary of less than Sh24,000 to be exempted from paying Pay-As-You Earn tax on their salaries.

Other employees will enjoy a five per cent tax relief.

Containing the virus

In a meeting with the National Assembly’s Budget and Appropriations Committee, Yatani said the government had made significant efforts to contain the spread of the virus

“We have in this regard provided Sh40.3 billion to mitigate against the impact of the Covid-19 pandemic, which comprise Sh33.4 billion under recurrent and Sh6.9 billion under development,” said the CS.

Maize farmers are set to benefit from Sh10 billion that the State has allocated to the Strategic Grain Reserve to be used for replenishing national silos.

According to Yatani, the Agriculture ministry is already in touch with select county governors inquiring about the availability of food within their regions.

The government will also disburse cash to people living in slums, with reports indicating that low-income households will get a monthly stipend of Sh2,000.

Also contained in the second supplementary estimates is a Sh400 million allocation to provide food relief and non-food commodities in arid and semi-arid areas.

Treasury has allocated an additional Sh200 million to the police for enforcement and Sh200 million to prisons to combat the virus behind bars.