President Uhuru Kenyatta yesterday moved to address the cash crunch facing the country when he spelt out measures aimed at improving money circulation in the lower brackets of the economy.

In a move that is likely to ease the pain of traders owed money by State agencies, parastatal heads were directed to immediately release Sh34 billion in pending bills as a way of unlocking the flow of cash to ordinary Kenyans.

Addressing a meeting of parastatal heads at State House, Nairobi, Uhuru is said to have expressed displeasure over the low money circulation among the wananchi.

“The President wondered where all the money being used to construct government projects is going. In fact, he specifically asked us the question: Why are people broke; why is it that there is no money in their pockets?” one of the parastatal chiefs who attended the meeting confided in People Daily.

The Head of State also directed corporations with surplus money to immediately stop trading in Treasury Bills. So far, the meeting was told, various State corporations are holding about Sh100 billion in Treasury Bills, which the President ordered to be withdrawn immediately.

Risky borrowers

Treasury Bills are a secure, short-term investment option which offers returns after a relatively short commitment of funds.

By ordering the public sector to pull out of the money market, the State hopes banks will increase their lending to the so-called “risky borrowers”, paving the way for more money for SMEs.

The Head of State is also said to have expressed concern that government tenders have been benefitting only a few people.

we are are also in danger at cfc, unga shareholders also

True, I am also in CFC but trust that CFC are not driven by malice. Carmelia and Kakuzi mambo mbaya

@VituVingiSana has probably bought shares on all soon to be bought out firms and is waiting for His(Her) pay day.

KQ also on takeover by GoK.. KES 8.52 minimum