Banker calls for Govt stimulus to support economic growth

Banker calls for Govt stimulus to support economic growth

The government has been encouraged to increase its spending and meet payments to contractors and suppliers to stimulate economic growth.

According to NIC Group chief executive officer John Gachora, government spending still holds the key towards encouraging the private sector to drive growth.

Mr Gachora however said speedy payment of government dues holds the key to allowing businesses to expand and spur economic growth.

“The government must move quickly to ensure that local manufacturers, suppliers and SMEs that do business with government are paid to get this economy moving forward again,” Mr Gachora said.

The government has been grappling with a revenue collection shortfall of Sh84 billion that has seen government spending slow down.

Mr Gachora however said the injection of Sh200 billion from the Eurobond should enable government to increase its spend.

“We need a stimulus package and the stimulus package we need as a county is that the government must pay its debt,” he said.

Mr Gachora also called for honest talks on the removal of the interest rate cap adding that banks would need to prove they will operate in a responsive and responsible way to get the support from legislators to repeal or amend the law.

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