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Coronavirus

PBO wants a subsidy Expenditure created to Support Companies Manufacturing COVID-19 Related Equipment

NAIROBI,Kenya May 11 – The Parliamentary Budget Office has proposed the creation of a subsidy expenditure to support entities which are participating in the manufacture of COVID related equipment, COVID testing kits and associated reagents.

The office said that under the recurrent budget, Government has not shown clear support to businesses involved in manufacture of COVID -19 related equipment and also those with the capacity to engage in import substitution warning it may prolong harsh impact of the pandemic on economy.

“The review the budget of the state department for industrialization, shows no clear government support to businesses that are manufacturing PPEs . Without a clear economic recovery strategy, the economic and humanitarian effects of COVID may continue being felt long after the health crisis has ended.

In a budgetary estimates review document published on Friday, PBO further noted that government should provide subsidy to Kenya Airways and the railway and significant support set towards measures that will enhance safe travel in a COVID-19 environment.

Among the proposed options for alternative financing include a 5 percent reduction in the recurrent budget.

PBO also want the government to float a special COVID bond that will go towards supporting corona virus containment measures.

The budget office also want the  2020/2021 budget to channel more funds to the horticultural crops development authority in order to preserve horticultural products.

Horticulture sector is among export commodities which have been badly affected on account of the COVID-19 pandemic and it is estimated that the sector may lose approximately Sh 60 billion by end of 2020.

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