Cabinet gives debt-ridden public entities lifeline
The Cabinet has given the green light for government to write off non performing loans to government entities amounting to 2.9 billion shillings.
In a special cabinet meeting chaired by President Uhuru Kenyatta, the Cabinet gave a lifeline to public entities drowning in debt by okaying the policy paper on the proposed Write-off and Restructuring of Principal and Waiver of Accrued Interest Relating to Non-performing Loans.
The paper also proposes the restructuring and rescheduling of principal loans amounting to 764.3 million shillings and conversion of grants of principal loans totaling 268.2 million shillings.
Five other policy papers were also approved namely; The National Disaster Management Policy, National drought emergency fund regulations, Sports arts and social development fund regulations, the joint national mapping and resource mapping using multi agency approach and the policy approval to restructure the aviation sector.Get breaking news on your Mobile as-it-happens. SMS âNEWSâ to 22163
The following Cabinet papers were considered and approved:Also Read Agriculture sector calls for increased budgetary allocation
1: The National Disaster Risk Management Policy
Cabinet approved the National Disaster Risk Management Policy. The Policy is benchmarked on the best practices in disaster risk management. It lays down the strategies for ensuring the Government commits itself to enhancement of research in disasters and formulation of risk reduction strategies.
2:The Public Finance Management (National Drought Eme rgency Fund) Regulations, 2018
Cabinet approved the Public Finance Management (National Drought Emergency Fund) Regulations, 2018. The Regulations are meant to guide the operations of the National Drought Emergency Fund which is to be established for the purpose of improving the effectiveness and efficiency of drought risk management systems in the country as well as to provide a common basket of emergency funds for drought risk management.
3:The Proposed Public Finance Management (Sports, Arts and Social Development Fund) Regulations, 2018Also Read National Oil signs partnership with equity bank and eqwipetrol
Cabinet also approved the Proposed Public Finance Management (Sports, Arts and Social Development Fund) Regulations 2018. The Regulations are meant to guide the operations of the Sports, Arts and Social Development Fund. The principal objective of the Fund is to provide a sustainable financing to sports persons, artists and c ultural practitioners.
4:The Proposed Write-off and Restructuring of Principal and Waiver of Accrued Interest Relating to Non-performing Loans
Cabinet approved the Proposed Write-off and Restructuring of Principal and Waiver of Accrued Interest Relating to Non-Performing Loans. The National Treasury having analysed loans previously given to various public entities has recommended a write-off of principal loans totalling to Kshs 2.9 billion; restructuring/rescheduling of principal loans amounting to Kshs 764.3 million and conversion to grants of principal loans totalling to Kshs 268.2 million.Also Read Wrigley launches women entrepreneurship program in Kenya
5:The Joint National Mapping and Resource Mapping Using Multi Agency Approach (JNAM)
Cabinet approved the Joint National Mapping and Resource Mapping using Multi-Agency Approach to enable the provision of secure up-to-date geospatial data at minimum cost that would b e shared across a wide range of functions within government for planning and development purposes.
6:Policy Approval to Restructure the Aviation Sector
Cabinet approved the proposal for the National Treasury and the Ministry of Transport, Infrastructure, Housing & Urban Development to commence the process of coming up with strategies on how best to restructure the aviation sector with a view to achieving the desired quantum leap necessary to achieve a truly competitive regional aviation hub. The aim is to restore Kenyaâs aviation competitiveness, and to reclaim the countryâs position as an anchor economy in Africa, with Nairobi as the African civil aviation hub.
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