State urged to lend SMEs to revive economy-ICPAK chairperson tells government to stimulate businesses in any way possible

By Pili Chimerah

The Institute of Certified Public Accounts of Kenya has told the government to give credit to small and medium enterprises to help revive the economy.

ICPAK chair Rose Mwaura said both the government and community have been affected by the effects of Covid-19 on the business sector. She spoke at the official opening of the 7th Annual Public Sector and Accounts Conference in Mombasa

Many have lost their jobs while others have had almost half of their salaries cut due to the coronavirus. The government has also lost tax income due to the job losses.

Mwaura said the government needs to stimulate businesses in any way possible.

“It becomes very important for the government to sincerely focus on how to reopen the economy and how to assist all businesses and all sectors,” she said.

The country’s debts, especially during the pandemic, have also affected the economy with the Central Bank recording a Sh6.7 trillion public debt for the year ending June 2020.

Mwaura said the government also needs to enhance transparency on public debt.

It should consider retiring the commercial loans, the chairperson said, adding that state should also focus on repayment measures.

“Our high level of borrowing combined with a deterioration of the Kenya shilling exchange rate could portend tough times ahead for the country when it comes to repayment of our debt.”

ICPAK has, therefore, urged the national government to urgently roll out radical measures to curb wastage and minimise leakages in the use of public resources including transparency in the public procurement process.

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