The government has unveiled an economic stimulus loans program for businesses across the country as it seeks to revive especially the ailing tourism industry.
Government spokesperson Cyrus Oguna on Saturday, March 20, stated that the pandemic had led to loss of livelihoods for millions of Kenyans compelling the government to provide local business with the loans.
“The Government has rolled out a Post Covid-Economic Stimulus Programme in which the Ministry of Tourism and Wildlife has been allocated Kshs 2.29 billion to support tourism,” Oguna said.
Oguna also noted that the government had lost revenue and taxes, which was as a result of over 380,000 jobs lost in the tourism sector alone.
The job loss in the tourism sector translated to Ksh 60.8 billion loss in labour income. It is for this reason that the government has resorted to lend a hand to aid in the economic recovery.
From the Ksh 2.29 billion issued, Ksh1 billion will be used directly to pay over 5,000 community scouts. Ksh 1,374 billion is meant for coastal counties while Ksh 916,000,000 is reserved for tourism in other regions of the country.
Oguna also said that despite the fact that the pandemic is yet to be contained, there are higher chances that things are likely to get better. He further urged Kenyans to take advantage of the government intervention programme.
“It is important for businessmen to take advantage of this situation to refurbish their facilities in readiness for revival of the sector,” Oguna added.
To access the government economic stimulus, the business enterprises must have been in operation for a period not less than three years, and is located in Kenya.
Additionally, the business seeking the stimulus must be focusing on tourism with not less than 10 employees.
Some of the specific projects recommended by the government include accommodation establishment, which are in urgent need of refurbishment, hotel operations and amusement parks.
He also named entertainment joints, restaurants, aquariums and other tourist attraction sites as eligible business for the loans.
The government has also injected another Ksh 3 billion into the small business that are often considered the backbone of Kenya’s economic recovery and particularly those undertaken by the youths.
Oguna assured Kenyans and the coastal region residents in particular, that the government was in full support of the tourism sector which has often been the pride of Kenya.
“As government, we will do everything possible to help build confidence of international arrivals. In the meantime, we urge operators in the sector to focus on domestic tourism,” he said.
