Following widespread protests against increased taxes, Kenyan President William Ruto unveiled fiscal measures to tackle a budget deficit caused by the withdrawal of the Finance Bill 2024.
In a live address from State House, President Ruto detailed plans to cut spending by Sh177 billion and raise Sh169 billion through additional borrowing.
These steps aim to offset the anticipated Sh346 billion revenue shortfall from the now-defunct bill.
The government will seek approval from the National Assembly for these spending cuts, focusing on key priorities such as hiring 46,000 Junior Secondary School teachers, recruiting medical interns, buying milk from farmers at Sh50 per litre, and maintaining fertilizer subsidies.
Further allocations will fund road projects, settle coffee debts, establish the Coffee Cherry Fund, repay debts owed by state-owned sugar firms to farmers, support new university funding, and clear arrears owed to counties and the National Government Constituency Development Fund (NGCDF).
Additionally, the measures include dissolving 47 State corporations with overlapping roles, banning harambee activities for State officers, and eliminating confidential budgets across government offices, including the President’s.
Attorney General Justin Muturi will draft legislation prohibiting State officers from participating in harambee and other charitable activities.
Funding for offices of the First Lady, Deputy President’s spouse, and Prime Cabinet Secretary’s spouse will cease. The filling of Chief Administrative Secretary (CAS) positions is suspended, despite recent parliamentary approval.
Other austerity measures involve a one-year suspension on purchasing motor vehicles for government agencies (except security teams), halting non-essential officer travel, cutting government building renovation budgets by half, and reducing government advisor numbers by 50 percent.
Public servants must retire at 60 with no exceptions.
To address public debt concerns, President Ruto announced an independent task force to conduct a forensic audit of Kenya’s debt, expected to deliver findings and recommendations within three months.
