13TH FEBRUARY, 2014 PRESS BRIEF THIRD CABINET MEETING 2014 Today, President Uhuru Kenyatta, chaired the

e Third Cabinet meeting in 2014, where Cabinet approved the Budget Po icy !tatement, 2014, the "ivision o# $evenue, 2014, and the County % ocation o# $evenue Bi , 2014& The Cabinet a so approved the estab ishment o# 'ree Trade (one in )ombasa, setting the stage #or the )inistry o# *ndustria i+ation to ro ,out the country-s #irst 'ree Trade (one& The approva hera ds a new dawn where the 'ree Trade (one is e.pected to promote and strengthen trade within the /ast, Centra and !outhern %#rica by a owing trading o# goods duty #ree within the (one& This wi be the 'irst 'ree Trade (one in /ast %#rica& The envisioned 'ree Trade (one wi enab e goods to enter into the (one duty #ree where traders #rom Kenya and the region can purchase them without having to trave to traditiona destinations i0e "ubai, China and 1apan& *t is e.pected to start operations with motor vehic es, househo d goods and construction materia s amongst others& The 'ree Trade (one wi a so open up a ready mar0et #or the wider %#rican continent and thus spur numerous economic activities #or the country& The (one is e.pected to raise the country-s trade vo umes as we as create the much needed 2obs& Budget Po !"# St$te%e&t The BP! is a summary o# the state o# the economy where Cabinet noted that the g oba economic prospects are improving with the U! economy, registering a 34 growth& $egiona y !ub !aharan economies are doing we & *t is e.pected that the country wi have a stab e macro,economic environment& Under this paper, the 5overnment targets to achieve a higher annua growth rate through the #o owing interventions6 i& Creation o# a conducive business environment #or emp oyment ' The ob2ective here is to maintain a stab e micro,economic environment, deepening on,going structura and governance re#orms, and #ocusing on genera improvement o# security& This is e.pected to support innovation, and investment eading to growth and e.pansion o#

the economy and emp oyment in the country& ii& Under governance in particu ar, the government wi imp ement we ,targeted governance and anti,corruption re#orms #ocusing on, corruption prevention, economic crime investigations and assets recovery, bui ding and strengthening o# prosecution capacity& Priority wi be accorded to improving governance in particu ar to medica supp ies, #ree primary and tuition in schoo s, pub ic wor0s, 7ationa Po ice !ervice, $evenue %dministration, Procurement, *mmigration and 8ands& To achieve these, a Kenya *ntegrity Programme 9K*P: wi be deve oped in 2014& *t wi contain a code o# conduct re;uiring vetting o# a pub ic o##icers& The Po icy recogni+es the 0ey ro e security p ays in nationa deve opment& *n this regard the 5overnment wi #ocus on< *nvestment in security in#rastructure such as housing, o##ices, security insta ations and training #aci ities& The 5overnment wi construct at east 1=,000 housing and bui ding units #or the 7ationa Po ice !ervice, part y through Private,Pub ic,Partnership #ramewor0& This initiative wi be e.panded in the medium term to cover the Kenya "e#ence 'orces and the Prisons "epartment6 'urther investment in mobi ity and patro o# security operations by easing at east 1,>00 motor vehic es and ? aircra#ts and other security e;uipment per year& To comp ement these e##orts and ensure optima impact, a motor vehic e # eet management system and a techno ogy,based border survei ance and contro system wi be put in p ace6 *nvestment in security e;uipment, arms upgrade and armoury6 "eve opment o# standards and guide ines #or insta ation o# integrated c osed,circuit te evision 9CCT@: system in a urban bui dings and wor0 with county governments to e.pand street ighting, rehabi itate a coho and drug addicts and to strengthen partnership between communities and security agencies #or neighbourhood sa#ety6 !trengthen institutiona and ega #ramewor0 #or border security, inc uding investing on personne training, appropriate security e;uipment and techno ogy to monitor, contro and e##ective y en#orce border security6 Underta0e a comprehensive training program on modern personne management and po icing, recruit at east ?00 pro#essiona s to he p drive critica re#orms in the security sector6 and

 *nvest in a modern and #unctiona command and contro system as we as estab ish and ma0e operationa a system,wide #orensic aboratory through a private #inance initiative 9P'*: to enhance crime investigation&

Food Se"u(!t# The BP! a so #ocuses on measures aimed at achieving ong term #ood security so utions #or the country& *n this endeavour the po icy wi initiate the #o owing6 1& *mprovement o# %gricu tura Productivity by supporting sma ho der and ivestoc0 #armers as we as commercia #armers by guaranteeing mar0ets and prices& 2& Creation o# a comprehensive agri,business initiative invo ving provision o# #armersirrigation 0its and #ish ponds in a secondary schoo s wi be ro ed out, starting with a ha # o# the secondary schoo s in #isca year 2014A1>& ?& 'ocusing on support to 8ivestoc0, Pou try and dairy #armers& 4& /.pansion o# 'ood Production through irrigated agricu ture& To #urther support agricu tura trans#ormation the po icy has measures to encourage e.pansion o# commerce, growth e.port o# goods and services which wi e.pand emp oyment opportunities& This wi be achieved through investment in in#rastructure by estab ishment o# #irst c ass rai and road networ0 which shou d eventua y ma0e a transport hub in the /ast %#rican region&

M$&u)$"tu(!&g $ecogni+ing the need to e.pand and create emp oyment opportunities #or the youth the po icy has given priority to manu#acturing with the purpose o# moving agricu ture up the va ue chain through va ue addition&

T($&*+o(t $&d I&)($*t(u"tu(e Construction o# the !tandard 5auge $ai way that is a ready underway wi cut transport cost by upto B04 and wi #aci itate #aster and cheaper movement o# goods and passengers& This wi great y improve Kenya-s competitiveness& The po icy a so contains the measures to improve< Power supp y through production o# cheaper and a##ordab e energy& /.tend access to ;ua ity socia services&

 *mprove hea th care by underta0ing re#orm in the sector& !ca ing up o# socia protection& E*t$, !*-%e&t o) F(ee T($de .o&e* Cabinet a so approved the estab ishment o# 'ree Trade (ones in )ombasa& The estab ishment o# the 'ree Trade (one wi be a cata yst #or attracting g oba and oca investors and )u ti 7ationa Corporations 9)7Cs: to Kenya& This wi he p stimu ate oca , regiona and internationa trade as we as investment& *t is intended to improve Kenya-s g oba competitiveness&

T($))!" /$%* !& N$!(o,! Cabinet noted with great concern the current tra##ic congestion in the City o# 7airobi and directed the Cabinet !ecretary #or Transport and *n#rastructure to iaise with the 5overnor 7airobi County to #ind an urgent so ution #or easing tra##ic # ow in the City& $ecogni+ing the need #or a ong term so ution, Cabinet directed the )inistry o# Transport to #ocus on a ternative transport #or the City main y commuter rai through Pub ic Private Partnerships&

Pu, !" P(!0$te P$(t&e(*-!+* )inistries were urged to identi#y pro2ects under their doc0ets that can be underta0en through PPPs which wi ease the current pressure on the e.che;uer&

1+t!%$ ut! !2$t!o& o) Pu, !" Fu&d* Concerned over the waste#u use o# pub ic resources, Cabinet directed the 7ationa Treasury to ensure prudent and optima uti i+ation o# these resources at both 7ationa and County 5overnment eve s& C$,!&et 1))!"e NAIR1BI 13t- Fe,(u$(#, 2014