The Kenyan government has announced a multi-billion public expenditure plan it hopes will pull the economy out of its most severe slump in 20 years, Business Daily reports.

President Mwai Kibaki unveiled the Sh40 billion plan yesterday in his Madaraka Day speech.

The proposed plan will see government spend around Sh20 billion on infrastructure projects, to stimulate the agriculture sector and by establishing special economic zones to increase exports.

Kibaki said government is making strategic interventions in all sectors with a view of boosting economic growth, creating employment and eliminating poverty.

During his speech the president also unveiled the agriculture Marshall Plan that will see more than Sh15 billion spent to lift crop and animal production through the improvement of the country’s irrigation schemes.

In the short term government will also spend Sh9.7 billion on the importation of fertiliser.