Details of Kenya's Ksh. 7.8 Billion Support From European Union

  • President Uhuru Kenyatta siging a Bill into law at State House in Nairobi, October 13, 2017.
    President Uhuru Kenyatta signing a Bill into law at State House in Nairobi, October 13, 2017.
    PSCU
  • Kenya has received a Ksh. 7.8 Billion grant from the European Union to cushion the country from negative effects of the Covid-19 pandemic.

    In a statement to media houses on Monday, June 8, the European Union provided a break down of the Ksh. 7.8 Billion grant.

    "The EU is providing an additional €65 million (Ksh. 7.8 Billion) to Kenya to address the socio-economic impact of the Covid-19 pandemic, helping Kenyans at risk of hunger and strengthening measures to prevent the spread of Covid-19," read the statement.

    An image of a man holding a stash of cash
    Kenya's new currency notes being displayed.
    Simon Kiragu

    Of the Ksh. 7.8 Billion, Ksh 3.6 billion will be used to mobilise resources towards containing the spread and impact of Covid-19 in the health, social and economic sectors.

    This will be provided through budget support to the Government of Kenya in response to the Covid-19 crisis.

    Ksh 1.2 billion will be allocated to directly support vulnerable families and individuals in informal settlements through monthly cash transfers.

    This will be done through careful checks to avoid double recipients and ensure health services are provided to the most vulnerable people. It is also aimed at ensuring the most vulnerable individuals can protect themselves from Covid-19.

    Ksh 2.4 - 3 billion will be used directly for Kenya SMEs Access Finance. This will provide SMEs with short-term working capital which is essential for them to continue operating and keep Kenyans in jobs. It will also stimulate investments for the post-Covid-19 recovery.

    Ksh 600 million will be channeled for the Safe Trade Emergency Facility which maintains the critical supply chains for trade, ensuring food security and access to critically required medicines.

    The grant will also be used to make the borders and the ports safer to counter the spread of Covid-19 as the two have been identified as a weak link in combating the virus.

    Back in April, the EU provided a package worth €1.8 million, equivalent to Ksh211 million.

    The funds were provided by the European Union (EU) and three of its Member States. These included Denmark with Ksh 150 million, Finland and Sweden, both raised Ksh 33 million.

    Central Bank of Kenya (CBK) building in Nairobi.
    Central Bank of Kenya (CBK) building in Nairobi.
    Simon Kiragu
    Kenyans.co.ke