Kenya’s Central Bank of Kenya (CBK) on Friday released 7.4 billion shillings ($70 million) to support government efforts to contain the spread of Coronavirus in the country.
Speaking in Nairobi, during President Uhuru Kenyatta’s meeting with the private sector, CBK Governor Dr Patrick Njoroge said the money was gained from the mop-up of the old 1000 shillings’ ($10) bank notes last year.
“As you recall in September last year we concluded the demonetization of our currency relating to our old generation one thousand bank notes. That matter was concluded and as a result of that, Shs. 7.4 billion worth of bank notes never came back to the system.
“That money would have been held by people who, for whatever reason, did not want to subject themselves to the checks that were in place. So most likely this was money that might have been illicitly acquired through the various channels that we have talked about in other forums,” the CBK Governor said.
D.r Njoroge said the bank is giving back the money to boost the government’s efforts to combat the Coronavirus pandemic.
“That money goes to help our health facilities and our health workers,” Kenyatta said.
During the meeting, Kenyatta announced a further 1 billion shillings’ ($9.4 million) allocation by the government for hiring of more health workers needed to increase the country’s capacity to deal with the Coronavirus pandemic.
He said the additional funds will ensure the government brings on board enough manpower to support those already in the field working to save lives.
The President’s meeting with the private sector representatives discussed a raft of other measures being taken to cushion the country from the effects of the Coronavirus pandemic.
Key among the interventions is an announcement by the Head of State that outstanding Value Added Tax (VAT) refunds and pending bills would be settled within 30 days.
The President said VAT refunds and settlement of pending bills will help improve cash flow and keep businesses afloat.
“Critically, we all recognize that the volume of business has gone down. We need to ensure that we have cash flow to be able to keep ourselves afloat as we go through these trying times,” the Kenyatta said.
The East African nation confirmed its seventh case of Corona virus on Wednesday.
Kenyatta on Sunday ordered the immediate closure of all public schools as well as suspended travel for all people coming into Kenya from any country with Covid-19 after confirming the first case last Friday.
JK/abj/APA