CORONAVIRUS UPDATE

National Treasury establishes Covid-19 Emergency Response Fund

Fund to mobilise resources for an emergency response towards Covid-19.

In Summary

• The fund will also be used to restore facilities for compulsory quarantine for safe use by the hosting institutions.

• The fund will also be used to purchase the essential supply for public hospitals and other related institutions, health professionals and front-line workers.

National Treasury Cabinet Secretary Ukur Yatanni.
Image: EZEKIEL AMING'A

The National Treasury has established the Public Finance Management Regulations for the year 2020 which will see the setup of an emergency fund to fight the coronavirus pandemic.

Treasury CS Ukur Yatani said the fund will be used to mobilise resources for an emergency response towards containing the spread, effect and impact of the disease.

The fund will also be used to purchase the essential supply for public hospitals and other related institutions, health professionals and front-line workers.

It will also be used to support and stimulate micro, small and medium enterprises which have been rendered vulnerable by the disease.

This comes a day after President Uhuru Kenyatta constituted a 10-member board to oversee the fund.

The board will play a key role in fostering the national response to the pandemic.

The board will be chaired by Jane Karuku and its members include acting Safaricom CEO Micheal Joseph, Equity Group chief executive James Mwangi, Dr Narenda Raval, KCB CEO Joshua Oigara and Absa Bank Kenya PLC managing director Jeremy Awori.

Others are Royal Media Services MD Wachira Waruru, Mohammed Hersi and Kenya Association of Manufacturers CEO Phyllis Wakiaga.

While Kennedy Kihara will be the secretary to the board, Uhuru has designated Interior CS Fred Matiangi and the Chairperson Council of Governors Wycliffe Oparanya as joint representatives of the government.

The fund will also be used to restore facilities for compulsory quarantine for safe use by the hosting institutions.

CS Yatani said the fund will also be used to enhance the capacity of the relevant research institutions used in handling Covid-19 surveillance as well as funding other emerging issues from the pandemic.

Where the money will be drawn from

The established fund will be drawn from the monies which will be appropriated by the National Assembly, voluntary contributions from the public officers and private persons, grant donations, subscriptions, bequests and any other source to be approved by the CS.

The CS said the public was not consulted before the regulations were drafted due to the extraordinary nature of the pandemic.

This was also due to the directives from the Ministry of Health to the public to observe social distancing.

The fund now awaits to be passed by the National Assembly which will have a special sitting on April 8.

Leader of Majority Aden Duale requested for the sitting whose agenda would include laying on the table, Covid-19 Emergency Fund Regulations.

MPs will also pass the Tax Laws (Amendment) Bill, 2020 which adjusts the income tax bands to give 100 per cent tax holiday for those earning less than Sh24,000.

The sitting will also be for consideration of legislative measures to cushion the country from the effects of the virus.