Nairobi: The Government has reaffirmed its commitment to economic stability, universal health coverage, and disaster preparedness through a series of fiscal interventions, health sector reforms, and emergency response measures aimed at strengthening national resilience. Speaking during a press briefing in Nairobi on Monday, Government Spokesperson Dr. Isaac Mwaura outlined progress in the health, financial, agriculture, and energy sectors, saying the measures are intended to protect households, sustain economic growth, and improve service delivery.
According to Kenya News Agency, Dr. Mwaura dismissed claims that Kenya’s economy was under threat, saying the country remains stable and attractive for investment despite attempts by some political leaders and foreign commentators to portray it negatively. ‘You cannot claim national leadership while at the same time trying to sabotage the economy on the basis of segregation. Kenya remains stable and secure for business,’ he said, noting that international tourist arrivals had increased from 1.48 million to 2.7 million. He also criticized misinformation circulated on social media about Kenya. ‘Someone came here called Skai Jackson and misrepresented our country. How can you come here and say that Kenyans do not even have mirrors? Kenya is a great country,’ he said.
On healthcare, the Government announced the signing of a Strategic Objective Agreement (SOAG) between Kenya and the United States to support Universal Health Coverage (UHC). Under the agreement, the United States will provide USD 1.686 billion over the 2026-2032 period, while the Kenyan Government will co-invest USD 850 million to strengthen health systems and improve access to quality healthcare services. Dr. Mwaura said the funding would be channeled through a Government-to-Government mechanism to enhance transparency and accountability by utilizing Kenyan public institutions.
He further announced that 7,414 Universal Health Coverage workers had been transitioned from contract terms to permanent and pensionable employment, a move expected to strengthen health service delivery across the country. Responding to concerns over the management of the Social Health Authority (SHA) digital claims system valued at Sh1.4 billion, the spokesperson dismissed reports suggesting that private firms controlled the platform. He clarified that SHA alone has the legal authority to approve and disburse health insurance claims, while the two percent deduction from approved claims is a statutory service fee provided for under the Digital Health Act, 2023, to facilitate electronic processing.
To cushion consumers from fluctuations in global fuel prices and geopolitical tensions in the Middle East, the Government has extended the reduced eight percent Value Added Tax (VAT) on petroleum products for a further three months until October 14, 2026. In addition, the Government has released Sh945 million from the Petroleum Development Levy to stabilize fuel prices during the July-August 2026 pricing cycle. Dr. Mwaura said the Government-to-Government oil import framework continues to guarantee adequate fuel supplies while easing pressure on the country’s foreign exchange reserves.
On tax administration, he announced that the Kenya Revenue Authority (KRA) had launched the third phase of its tax amnesty programme, running from July 1 to December 31, 2026. The programme offers taxpayers a 100 percent waiver on penalties and interest for tax debts accrued up to December 31, 2025, with the Government encouraging eligible taxpayers to regularize their tax records. Dr. Mwaura attributed the Government’s continued fiscal interventions to improved economic performance, noting that Kenya’s economy grew by 5.3 percent in the first quarter of 2026 compared to 4.9 percent during the corresponding period in 2025.
On disaster preparedness, he said the Government was implementing coordinated multi-agency interventions in readiness for the anticipated El Ni±o rains while sustaining drought response programmes in affected parts of the country. He noted that the World Meteorological Organization had projected an intensification of weather patterns, prompting the Government to strengthen preparedness measures to minimize the impact of possible floods. To support vulnerable households affected by drought, the Government has disbursed Sh1.8 billion through the Hunger Safety Net Programme (HSNP) for the February-June 2026 payment cycle, benefiting 133,484 households across eight Arid and Semi-Arid Lands (ASAL) counties.
Under the programme, each household receives Sh2,700 every month through Equity Bank and Kenya Commercial Bank, with Turkana County receiving the largest allocation of Sh537.9 million to support nearly 40,000 households. Dr. Mwaura also dismissed misinformation surrounding the Sacco Societies (Amendment) Bill, 2025, saying the proposed law seeks to strengthen the cooperative movement by lowering operational costs for smaller Saccos rather than creating a monopoly. He said management committees of Saccos would continue to be elected by members without Government interference, while secondary Saccos would remain prohibited from lending directly to individual members. ‘When a Bill is proposed, don’t tell people it has already been passed. Kenya is a democracy and citizens should be allowed to give their views because nobody has a monopoly of knowledge,’ he said.
