Cabinet approves write-off on Sh2.9bn owed by State entities

President Uhuru Kenyatta (right) and Cabinet Secretary for Treasury Henry Rotich at a past event. PHOTO | SALATON NJAU | NMG 

By KENNEDY KIMANTHI

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Summary

• The decision was reached at after a special Cabinet meeting chaired by President Uhuru Kenyatta at State House on Tuesday.
• The National Disaster Risk Management Policy was also approved.
• The policy is benchmarked on the best practices in disaster risk management.

Cabinet has approved the proposed write-off of loans totalling to Sh2.9 billion previously given to government institutions.

The decision was reached at after a special Cabinet meeting chaired by President Uhuru Kenyatta at State House on Tuesday.

A statement sent to newsrooms said the National Treasury having analysed loans previously given to various public entities also recommended the restructuring of principal loans amounting to Sh764.3 million and the conversion to grants of principal loans totalling Sh268.2 million.

The National Disaster Risk Management Policy was also approved.

The policy is benchmarked on the best practices in disaster risk management.

Disaster research

It lays down the strategies for ensuring the government commits itself to enhancement of research in disasters and formulation of risk reduction strategies.

Also getting a nod from the cabinet was 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.
Regulations to guide the operations of the Sports, Arts and Social Development Fund were agreed on.

The principal objective of the Proposed Public Finance Management (Sports, Arts and Social Development Fund) Regulations 2018 is to provide a sustainable financing to sports persons, artists and cultural practitioners.