Business

Treasury allocates Sh23.7 billion to manufacturing sector to boost job creation

National Treasury Cabinet Secretary Njuguna Ndung'u. (X/Parliament)

By Lucy Mumbi | Thursday, June 13, 2024

He noted that through strong economic fundamentals, together with renewed investor confidence, a total of 848,200 new jobs were generated in the economy compared to 816,600 new jobs generated in 2022.

The government has allocated Sh23.7 billion in the 2024-25 Financial Year to bolster the manufacturing sector and create jobs.

Treasury Cabinet Secretary Njuguna Ndung’u announced the proposal on Thursday at Parliament, emphasising the government's commitment to fostering local industries.

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The proposed allocation includes Sh4.5 billion to support the establishment of County Integrated Agro-Industrial Parks, Sh1.1 billion for the construction of investor sheds in Athi River and Sh1.9 billion has been earmarked for the Supporting Access to Finance and Enterprise Recovery (SAFER) Project.

Additionally, Sh1.9 billion has been allocated towards the establishment of six flagship Export Processing Zones (EPZ) hubs, Sh440 million for the development of a Special Economic Zone (SEZ) Textile Park in Naivasha, and Sh1 billion for the Kenya Jobs Economic Transformation (KJET) initiative.

"These initiatives are part of the government's broader strategy to stimulate economic growth through manufacturing and to create sustainable employment opportunities for Kenyans," Ndung’u said.

He noted that through strong economic fundamentals, together with renewed investor confidence, a total of 848,200 new jobs were generated in the economy compared to 816,600 new jobs generated in 2022.

He reiterated that to create more employment, special focus has been given to investment in Special Economic Zones and County Aggregation and Industrial Parks; diversification of export markets and market access of goods and services from Micro, Small and Medium Enterprises.

Ndung’u said the Government will also accelerate the implementation of policies, programs, projects and interventions in the Bottom-up Economic Transformation Agenda (BETA) to strengthen economic recovery.

Such policies include enhancing agricultural transformation, supporting the Micro, Small and Medium Enterprises, providing affordable housing and settlement, achieving universal healthcare and supporting the growth of digital superhighways and a creative economy for job creation.

"The policies and structural reforms outlined in this budget have laid a firm foundation to protect this fragile recovery for a sustained socio-economic transformation. Financing development is critical to this economic transformation, that is why raising adequate tax revenues is a core pillar for this economic transformation and growth," he said.

"I am confident that these measures will create jobs, strengthen economic recovery and reduce the cost of living in the country thereby providing a much-needed relief to the common Mwananchi."