The government is contemplating opening some businesses as it faces the harsh reality of a shrinking economy.
On Friday, April 24, Treasury CS Ukur Yattani disclosed that the government is discussing measures on how it would open a number of businesses that have been affected by Coronavirus (Covid-19) to prevent the economy from depreciating even further.
In the interview with Citizen TV, Yattani stated that among the businesses are restaurants, which may be allowed to open, but would operate under strict measures.
On Sunday, March 15, the government shut down bars and restaurants were directed to offer to take away services. However, a number of food joints also shut down as many Kenyans were asked to stay at home to curb the spread of Covid-19.
"If the problem continues like this, we would start thinking about how we will mitigate the economy without compromising the health of our people.
"A time may come when we may need to open restaurants but with certain protocols in place. Like a restaurant accomodating 20, but with protocols in place, it will have to accommodate 5 or 10. It is a matter being engaged and discussed at other levels as a second consideration," Yattan revealed.
Since the closure of businesses happened, the government is set to lose Ksh172 billion. It redirected Ksh100 billion funds meant for development projects and channelled it to the Covid-19 fight. However, with this still not enough, the other option it has is to seek another loan.
President Uhuru Kenyatta's government is looking at borrowing a total of Ksh175 billion, Ksh100 billion from the World Bank and Ksh75 billion from the International Monetary Fund (IMF).
"The payment is going to be way in future with a grace period of 15 years and an interest rate of 1% or below," Yattani disclosed.
With the developed nations proposing that the third world nation's loan repayment be postponed up to December 2020, Yattani, however, had a different approach in mind. He suggested that Kenya and others should be allowed to repay the loans after two years.
"We are not too excited (with the December 2020 idea) because a lot of money paid between now and December would be Ksh 60 billion or Ksh 70billion. That's not what we were looking for, but anyway, it gives us a certain grace period," he added.
Video: Citizen TV
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