President William Ruto of Kenya has announced austerity measures aimed at slashing government spending. This was in response to widespread protests triggered by a Finance Bill.
The decision came after violent demonstrations which resulted in the death of about 23 people and saw protesters breach the National Assembly for the first time in Kenya’s history, and set ablaze part of the complex.
Addressing the nation during an X-Space engagement on Friday, President Ruto revealed that he had rejected the controversial Finance Bill due to inconsistencies. “The bill was marred with falsehood and propaganda,” Ruto stated, emphasizing that its provisions were originally intended to create jobs and protect local industries.
The Finance Bill, which was initially proposed to address Kenya’s growing budget deficit, was met with severe public backlash. The outright rejection of the Bill has prompted the Ruto administration to come up with alternative measures to reduce the cost of governance.
Kenya’s public debt currently stands at 68 per cent to GDP, far exceeding the 55 per cent threshold recommended by the World Bank and the International Monetary Fund (IMF).
In a speech delivered at the State House in Nairobi, Ruto listed the government’s new fiscal strategy, which includes stamping out budgetary provisions for the offices of the First and Second Ladies. “The budgetary provisions for confidential budgets in various executive offices, including my office, shall be removed, and the budget for renovations across the government reduced by 50 per cent,” he announced.
Ruto also dissolved 47 state corporations with overlapping functions to remove their operational and maintenance costs. “Their functions will be integrated into the respective line ministries,” he said, noting that employees from these corporations would be redeployed to other government departments.
Ruto announced further measures to include an immediate halt to the hiring of chief administrative secretaries and a 50 per cent reduction in the number of government advisers. Civil servants aged 60 and above will be required to retire without extensions, and the purchase of new government vehicles will be suspended for a year, excluding security agencies.
To give legal backing to the measures taken, Ruto mandated the attorney-general to draft a legislation to formalize these changes and develop a transparent system for public and charitable contributions.
Source: Leadership.ng
