This speech is as published by the President's Strategic Communications Unit (PSCU)
Published November 12, 2020
The Speaker of the National Assembly,
The Speaker of the Senate,
Honorable Members of Parliament,
Distinguished Guests,
Fellow Kenyans,
It is my great pleasure to join you today as I report to the People of Kenya on the State of Our Nation.
I return to this esteemed chamber to deliver my Seventh State of the Nation Address in a House that I had the privilege of serving in for eleven years; five years on the opposition benches as the Leader of the Official Opposition and for six years as a Cabinet Minister. My mixed bag of fortunes whilst in this House, affirms the possibilities of our Nation.
Mr. Speaker and Hon. Members, as a reminder of our sacred duty to our beloved Nation, and in renewal of our solemn pledge to God and to one another, let us reflect on these words:
O God of all creation
Bless this our land and nation
Justice be our shield and defender
May we dwell in unity
Peace and liberty
Plenty be found within our borders.
May the words of our National Anthem inspire us all to serve faithfully; and with hearts filled with thanksgiving.
Mr. Speaker, today, as I deliver the State of the Nation Address, I will also report on the measures taken and the progress achieved in the realization of our National Values in line with Article 132 of our Constitution.
Finally, I will submit to the National Assembly a Report on the Progress Made in Fulfilling the International Obligations of our Republic, as well as a Report on the State of our National Security.
Mr. Speaker,
I wish from the onset to assure you that the State of our Nation is STRONG, RESILIENT and BRIMMING WITH THE PROMISE OF AN EVEN BRIGHTER TOMORROW.
Hon. Members,
I deliver this State of the Nation Address in the midst of extraordinary global economic, social, and health disruptions, which have not spared us. Those disruptions necessitated the rescheduling of this Address for about Six Months.
Before I embark on that solemn constitutional duty, I note with satisfaction the critical role Parliament has continued to play in facilitating and driving the realization of our National Vision by appropriating resources; and by oversighting the Executive, the Judiciary and the County Governments.
I particularly commend both Houses for your superlative support for the measures sought by the Executive with regard to the National Emergency Response to the Coronavirus Pandemic; and for approval of all statutory instruments issued under the Public Health Act and the Public Order Act, as part of the containment measures rolled-out to stem the spread of this deadly disease.
I also convey my gratitude to the National Assembly for the expeditious consideration of my nominees to various state offices including Ambassadors, High Commissioners and Permanent Representatives to Kenya’s mission abroad. I note with appreciation that our latest state nominee; being our Nation’s inaugural Data Commissioner was duly considered by the House.
Mr. Speaker Sir, I am pleased to confirm to this House, that the roll out of the unique personal identification number (Huduma Namba), with all its attendant benefits, is now fully on course.
Hon. Members,
We are desirous of accelerating the implementation of our National transformative Agenda.
In this regard, I urge Parliament to prioritize the consideration of various seminal Bills that are pending before the Legislature, such as the National Aviation Management Bill, which once enacted, will anchor the turnaround of the Pride of Africa – our National carrier, Kenya Airways.
Also before the House, is the Statute Law Miscellaneous (Amendments) Bill, Business (Amendment) Bill No. 2 of 2020 and proposed legislation on the administration of referenda and on enhancing governance and on deepening our anti-corruption efforts.
Hon. Members,
As we ushered the third decade of the 21st century, we were invaded by locusts threatening to decimate our food baskets and the livelihood of millions of our farmers. In the far Eastern part of the Globe, a new disease (Covid-19) was emerging, devastating millions of people.
The World Health Organization declared the COVID-19 outbreak a Public Health Emergency of International Concern on 30th January 2020, and a Pandemic on 11th March 2020.
The COVID-19 Pandemic has led to an unprecedented loss of life, global economic slow-down; the postponement of major cultural, religious, political, and sporting events including the 2020 Olympic Games.
It also led to the shutting down of borders and airspaces; the closure of institutions of learning; disruption of production and supply-chains; a massive strain on health systems in every nation on earth; and tremendous pressure on individuals, families, communities and entire nations.
On 28th February 2020 through Executive Order No. 2 of 2020, I established a framework to upscale and co-ordinate Kenya’s preparedness and response to the Coronavirus threat. Kenya’s first case of COVID-19 was confirmed on 13th March 2020.
In the days and weeks that followed, my Government put in place a series of public health measures, to stem the spread of COVID-19.
These included Kenya’s first ever nationwide curfew since independence; the restriction of movement into and out of the most affected counties; the shutdown of learning institutions; a ban on public and social gatherings; restrictions on the number of passengers in public service vehicles; among other containment measures.
Our health institutions also ramped up their preparedness by training their staff on management of the disease; by creating isolation areas; and by procuring and deploying the relevant equipment and medication. Despite these commendable efforts, as of this morning, Thursday 12th November 2020; we have reported a total of 66,723 confirmed cases of the COVID-19 in our Country and sadly also a total of 1,203 deaths since this tragedy fell upon us, out of which 23 persons succumbed to the disease over the last 24 hours.
Our hearts go out the families who have lost loved ones to Coronavirus. Our thoughts and prayers are with all those who are undergoing isolation or treatment with respect to this disease. We wish them a quick and complete recovery.
Mr. Speaker and Hon. Members of our August Houses of Parliament, I now request all of you to rise on your feet and join me in observing a minute of silence in honour and in memory of the 1,203 Kenyans, who have succumbed to the deadly disease.
[moment of silence]
Mr. Speaker,
We must not succumb to COVID fatigue. We must not ‘back truck’ from our vigilant fight against this pandemic. On our part as leaders, our stamina for discipline must not diminish. If the people fall short of giving their best at this time, we the leaders have no option but to give our all. We must “…know the way, go the way, and show the way”.
Mr. Speaker, we also once again honour and commend our frontline health workers across the Country, and we shall be forever grateful for their service under tremendous strain and challenging conditions.
We also recognize and honour all our other first responders, frontline staff and essential workers; who have selflessly gone, above and beyond, the call of duty and ensured that the Kenyan Flame continued to burn bright.
Honourable Speakers,
The COVID-19 Pandemic began against the backdrop of a steady economic growth rate of 5.4% in 2019. Our focus in implementing the Kenya Vision 2030 and its medium term plan dubbed the Big Four Agenda had been bearing fruit. As result, most of the major economic sectors evidenced impressive growth last year; including manufacturing, agriculture, tourism, and financial services.
When it became apparent that the COVID-19 Pandemic threatened to erode the significant economic gains we had made in 2019 and the preceding years; on 25th March 2020, I, announced State interventions to cushion Kenyans against adverse economic effects of the COVID-19 Pandemic, that warranted the National Exchequer to forgo taxes amounting to Ksh. 176 Billion annually. These tax measures included:
The temporary suspension of the listing with Credit Reference Bureaus (CRB) of any person, Micro, Small and Medium Enterprises (MSMES) and corporate entities whose loan account had fallen overdue or was in arrears;
The immediate reduction of VAT from 16% to 14%;
100% Tax Relief of all persons earning up to Ksh. 24,000.00
Reduction of Pay as You Earn from 30% to 25%;
Reduction of Corporation Tax from 30% to 25%;
That all Ministries were to pay at least Ksh. 13 Billion of the verified pending bills so as to improve liquidity in the economy and ensure businesses remained afloat by enhancing their cash flows; with the private sector also being encouraged to clear all outstanding payments owed within itself;
The Kenya Revenue Authority was directed to expedite the payment of all verified VAT refund claims amounting to Ksh. 10 Billion within 3 weeks; or in the alternative, allow for the offsetting of Withholding VAT, in order to improve cash flows for businesses;
That Ksh. 6.0 billion from the Universal Health Coverage kitty was to be immediately appropriated strictly towards supporting counties and the recruitment of additional health workers to support in the management of the spread of COVID-19;
The lowering of the Central Bank Rate (CBR) to 7.25% from 8.25% so as to prompt commercial banks to lower interest rates applicable to their borrowers, and thereby availing much needed affordable credit to MSMEs across the Country;
The lowering of the Cash Reserve Ratio (CRR) to 4.25% from 5.25% so as to provide additional liquidity of Ksh. 35 Billion to commercial banks in order to directly support borrowers that were distressed as a result of the economic effects of the COVID-19 pandemic; and
That the Central Bank of Kenya was to provide flexibility to banks with regard to the requirements applicable to loan classification and provision of loans that were performing as at 2nd March 2020. Continue Reading...
