State of the nation address; President Uhuru full speech.

On Tuesday, November 30, President Uhuru Kenyatta delivered the State of the Nation Address in Parliament. Read the full speech of the Head of State below:

Good after noon,

It is a great honor and privilege for me to return to Parliament to deliver my eighth State of the Nation Address since taking office as the Fourth President of the Republic of Kenya on Tuesday, April 9, 2013.

As always, it is a great pleasure to return to this August Parliament where I have served on both sides of the parliamentary division, with many of you here today.

I was first appointed Member of Parliament and later Cabinet. At that time I was a teenager; which is a testimony that even young people can serve. After running unsuccessfully for the presidency in 2002, I found myself on the opposition bench as the official opposition leader and deputy Gatundu Sud.

Five years later, and in recognition of my distinguished and law-abiding service, I was called to serve as Deputy Prime Minister in the Central Government of the Union under the leadership of the former President, Hon. Mwai Kibaki and under the former Prime Minister, Rt. Mr. Raila Odinga. Under this administration, I held the position of Minister of Commerce and later that of Minister of Finance.

This journey of various fortunes taught me that you can serve your country in any position, because service is not a job; is to act. It also taught me to be sympathetic to both sides of parliamentary divisions and to all political opinions.

Of all the subjects, the most lasting is that Kenya is still the largest of us all. In the midst of major political upheavals, patriotic men and women have been driven by love for their country to end sectarian divisions and unite to bring Kenya forward.

It was not easy, but it was necessary. So as today we were called to do whatever it takes to heal Kenya, build bridges and adhere to 99% of the shared vision of a better Kenya in priority for 1% of different ideologies.

Personal aspirations have been set aside for the benefit of Kenya and for the lasting benefit of generations of unborn Kenyans. This volunteer service, this sacrifice, led the people of Kenya to give me the great honor and privilege of serving as President, in 2013.

For the faith and trust that the great people of Kenya have instilled in me, I am very grateful and will be humbled forever.

Mr. Speaker,

Today I return to Parliament as President. I am here to fulfill the constitutional requirement imposed on our political traditions and customs by the 2010 constitution.

In fact, I had the opportunity to be the second President to fulfill this constitutional role when I delivered my first State of the Nation Address on March 27, 2014.

The Constitution, in Article 132, empowers the President to report to a special joint sitting of both Parliaments on the steps taken and the progress made in fulfilling national values ​​as defined in Article 10 of the Constitution.

I also have a constitutional duty to provide information on the state of our fulfillment of the international obligations of the Republic, the state of security of our nation and the general state of the Nation.

In accordance with these constitutional directives, my speech today will focus on three things that I consider important to our country.

First, the state of development of our economy, which concerns the well-being of our nation; second, the state of our social structure, which is responsible for the restoration and dissemination of the dignity of our people; and third, the state of our nation, which speaks of the soul of the nation, including the state of our democracy.

Before I provide information on these areas of concern, let me give a brief overview of the state of our national response to the emerging concerns.

In particular, I want to say how the electoral power of my administration, backed by Parliament and county governments, changed the Covid-19 epidemic from a national catastrophe to a generations of generations.

Mr. Speaker,

When this tragedy hit our country in March 2020, I quickly warned the nation that the problem was twofold; partially dangerous and partially opportunistic, at the same time.

I mentioned the inevitable fact that depending on what you focus on in adversity, you will come out victorious or indecisive, with fear and despair. In other words, the crisis is over elections.

Those who chose danger and fear under Covid’s fear did not survive. Those who saw the problem through the lens of opportunity, developed resilience and were able to “build themselves better”.

For example, a Kenyan company known as Revital, operating in Kilifi County, became the largest producer and seller of vaccines in Africa during Covid. In 2020 alone, Revital shipped more than 70 million COVID vaccines to more than 20 countries worldwide.

In fact, Revital currently has the capacity to administer 300 million Covid vaccines annually. The global syringe shortage for the Covid vaccine stands at 2 billion injections a year.

This means that Revital is capable of delivering 1 out of 10 Covid vaccines worldwide. The company saw an opportunity in the Covid dispute, adapted it and innovated its business processes to maximize that new opportunity.

Another company in the same league is Hela, an international textile company headquartered in Kenya. During the first months of the epidemic, the company changed its strategy from textile manufacturing to PPE and surface coatings.

At WHO’s demand for 80 million barrels per month at the peak of the COVID ban, Hela produced 5 million barrels per month between April and May 2020. This means that through innovation, Hela produced 1 of the 16 needed brackets worldwide each month. ; make a significant contribution to reducing the COVID epidemic. It was to see the opportunity in the tragedy and face its challenges.

However, options are nothing without leadership. I say this because when COVID-19 hit our country, my administration faced a dilemma on both sides. Opinions were divided on whether to close the country or leave it open. What made the difference was leadership.

One side of the division presented an economic argument. They wanted us to leave the country “open” to save the economy. They argued that Covid was a health problem that should not undermine economic importance.

The other side of the division has provided a compelling health argument versus economic argument. Led by a team of medical scientists and researchers, they argued that the country had no choice but to fast. Their examples showed growing conflict if rigorous elections were not held. According to these experts, a series of minimum non-reversible rates had to be respected, before considering soft health protocols.

After much deliberation, My Government has chosen the public health issue over the economic issue. Our argument was that we could revive a shaky economy all the time; but we cannot resurrect those who die from Covid-19. And by this logic informing our options, we determined to create the minimum non-reversible standards recommended by experts to prevent the Covid disaster.

When the health issue prevailed, we did not dismiss the economic issue as a whole. We made budget decisions to boost the economy through a number of economic stimuli. And today, I am pleased to announce publicly in this August Parliament that I have succeeded in the elections that my administration has held.

Because of our financial impetus, today I can report that the impact of Covid-19 on our economy was 14 times less than that on the global economy.

Mr. Speaker,

As part of the first stimulus plan, we announced measures that legitimized the National Treasury for the removal of Ksh 176 billion in taxes. These tariff measures include:

Immediate VAT reduction from 16% to 14%;

100% tax relief for all people earning up to Ksh. 24,000.00

Reduction of compensation when you receive from 30% to 25%;

Reduce company tariffs from 30% to 25%;

We lowered the Central Bank (CBR) rate to 7.25% from 8.25% to encourage commercial banks to reduce interest rates applicable to their borrowers, thus providing affordable loans including much-needed MSMEs across the country;

We reduced the cash flow ratio (CRR) to 4.25% from 5.25% to provide more liquidity in Ksh. 35 billion to commercial banks to directly assist borrowers in crisis due to the economic impact of the COVID-19 disaster;

The Central Bank of Kenya has issued changes to the bank in relation to the requirements for classifying loans and issuing loans that were in effect effective March 2, 2020;

We also asked all banks and financial institutions to support businesses and all families who wish to rehabilitate their commercial banking families through debt termination and service term review.

There has been a temporary moratorium on registration by credit reference institutions (CRB) of any person, small, medium and micro enterprise (MSME) and legal person whose loan account was delayed or expired;

The Kenya Revenue Authority has been tasked with speeding up the payment of all Ksh 10 billion certified VAT refund claims; or alternatively, to allow Restriction compensation to the Source, to improve corporate cash flow;

Ksh. 6.0 billion of universal health care bills were immediately provided to assist the county in recruiting additional health workers to help control the spread of COVID-19;

Later, my administration introduced a second stimulus plan with the help of Parliament, whose principle was an 8-point economic stimulus plan of Ksh. 56.6 billion.

The first part of the 8-part program focused on the “Buy Kenya, Build Kenya” policy. With regard to local infrastructure development, we have allocated Ksh 10 billion for the National Sanitation Plan (NHP), nicknamed the Street Work Plan. The initiative was envisioned as an expanded public works project aimed at using labor-intensive techniques to create sustainable public benefits in the urban development sector. The program has so far received good cooperation from more than 750,000 young people engaged in environmental and sanitation improvements and in the rehabilitation of access roads, roads and other public infrastructure through the local workforce.

The second was for education with the addition of KSh. 6.5 billion to the Ministry of Education. Hiring 10,000 teachers and 1,000 ICT trainers to support digital learning and access to 250,000 nationally designed desks.

The third phase of the program targeted small and medium enterprises, through a Ksh 5 billion injection as seed capital for a loan guarantee program for SMEs. The intention here is to provide affordable loans to small and medium-sized businesses.

The fourth focused on universal health care through the availability of locally made beds. The fifth element of the stimulus package focused on agriculture. My administration has introduced Ksh. 3 billion for the provision of agricultural inputs through electronic vouchers, targeting 200,000 smallholder farmers and another Ksh. $ 1.5 billion to help flower and garden producers access international markets at a time when we are missing flights to and from the country.

Tourism was the sixth target area of ​​the stimulus program. In order to revive this important sector and protect its players against huge financial losses, my administration has provided low interest loans to the relevant hotels and institutions through the Tourism Finance Corporation (TFC) and a total of Ksh. 2 billion was provided for mechanical repairs and restructuring of commercial activities of industry actors.

To reduce the effects of deforestation and climate change, and to improve water supply, my administration has rehabilitated wells, water reservoirs and underground reserves in arid and semi-arid areas. We have spent Ksh2.5 billion on flood control measures with our Greening Kenya campaign.

The eighth and final feature of the stimulus package was manufacturing. As a strategy, we used the “Buy Kenya Build Kenya” policy, we allocated initial investment from Ksh. 600 million to buy locally manufactured cars. This was expected to support the activities of local car manufacturers and the recruitment of staff as a result.

Preliminary measures have helped to strengthen the resilience of our economy, while protecting millions of households from the effects of the economy. In this regard, while the global economy has slowed, Kenya’s economy has grown by 0.3% by 2020 despite the challenge of COVID. Although this positive growth was modest, the second quarter of 2021 saw the most impressive growth in our country’s GDP record.

In the second quarter of 2021, real GDP grew by 10.1%. This is the highest quarterly growth in Kenya’s history. It is also the first time for Kenya to record two-digit growth. The last time Kenya’s economy approached this kind of performance was in 2010 under the Grand Union government, when the economy reached a growth rate of 8.4%.

And it was this impressive trend that led me to announce the 13 steps launched at the Heroes this year to boost the economy by Ksh. 25 billion as a third stimulus package, pushing our total stimulus beyond Ksh. 257 billion.

The third stimulus plan focused on key productive sectors and services that addressed: agriculture, health, education, drought response, policies, infrastructure, financial inclusion, energy, environmental conservation. These thirteen interventions were as follows:

The first intervention was in the tea sub-sector: I am pleased to confirm that we have supported the tea sub-sector with Ksh. $ 1 billion in support of fertilizer subsidies for our tea producers, to ensure the first agricultural exports in our country;

The second intervention was in the sugar sub-sector: I am satisfied with the fact that smoke is rising again in our public sugar factories, following the statement of Ksh. 1.5 billion in support to the sugar industry, which is used in industrial maintenance and repayment of debt arrears to farmers;

The third step was about the coffee sub-sector: I confirm that Ksh. 1 billion has been provided to support the ongoing reforms in the sub-sector which are being asked to complete the ongoing interventions targeted at the coffee sub-sector;

The fourth intervention was for the livestock sector: Ksh. A national program to raise 1.5 billion cattle is underway, to help communities affected by the ongoing smuggling in ASAL counties;

The fifth flu was also about the livestock sub-sector: I assure you that interventions aimed at reducing the cost of animal feed are progressing well.

The sixth step was about education: to see the success of my administration’s policy on 100% transition from primary to secondary school, I asked the National Treasury to allocate another Ksh. $ 8 billion to the Department of Education for the CBC program of infrastructure expansion to build 10,000 classrooms; I am very happy to assure the nation that in all counties, construction of classrooms is expected to begin in early December 2021.

The seventh intervention was about health: improving access to medical care across the country, and as part of our universal health immunization program, I asked the Ministry of Health to create 50 additional 3 level hospitals, located in covered areas as well. as the most populous areas in our country; and I also directed the National Treasury to allocate a total of Ksh 3.2 billion for the rapid construction of these new medical facilities;

The eight interventions were part of a national sanitation plan: we launched this program to harness the energy of our youth and give them protection against the unemployment associated with COVID-19. In view of the success of the Street Work program and its impact on improving opportunities for youth across the country, I requested the National Treasury to allocate Ksh. 10 billion for the third phase of the Street Work program. The program, which includes more than 200,000 young people, will be rolled out to all counties, with priority being given to densely populated areas;

The ninth stage involved energy and fuel. Be fully aware of the positive progress made in reviving our economy and be aware that these achievements are likely to be eroded by higher energy prices. I am pleased to confirm that we are in the process of setting the desired reforms.

The tenth step was to get loans: Basically, I asked the National Treasury and the Central Bank of Kenya to consider suspending the list of creditors with loans of less than Ksh 5 million to the Credit Bureau (CRB), in a targeted approach. in preserving the backward potential of our economic fundamentals.

As an eleventh interest, I also asked the National Treasury and the Central Bank of Kenya to consider adjusting the maximum amount that an individual or business can offer or set up a bank. Previously, it was one million shillings, which was not good for our current business environment.

I am pleased to report to Parliament that with effect from November 8, 2021, the Central Bank of Kenya issued a notice suspending the list of negative credit information for borrowers with loans of less than Ksh 5 million which has declined. arrears from October 1, 2021 to September 30, 2022.

This will give MSMEs 12 months to reorganize and adjust to the new economic situation.

I am also pleased to report that the Central Bank of Kenya is in the process of adjusting the one million dollar deposit and withdrawal rate at the bank. This will facilitate transactions for MSME and help the economy cope with COVID explosions.

Twelve interventions addressed to the digital financial services sub-sector: Recognizing the importance of digital financial services, especially for small businesses and households in general, I requested the National Treasury to engage all digital payment service providers with a view to strengthening and expand the scope. the use of digital payment methods.

Thirteen interventions were two-sided in the COVID-19 vaccine area: As part of our national response to the COVID-19 epidemic, we have sent a national vaccination plan. It aims to vaccinate 10 million adults by June 2022 and around 16 million by June 2023.

With regard to the development of COVID-19 vaccines, we decided to implement the independence lesson which was one of the main learning areas in this epidemic. As a first step towards this goal, we created Kenya Biovax Limited as a company that would produce COVID-19 vaccines locally. So I asked the Ministry of Health to work for the company to “train and fill” with the possibility of developing our locally produced vaccine by Easter 2022.

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