President William Ruto announced that his administration will eliminate budgetary allocations for the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary. Speaking on Friday, the President unveiled several austerity measures aimed at aligning government expenditures with the financial implications of withdrawing the Finance Bill, 2024.
“Budget lines providing for the operations of the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary shall be removed,” President Ruto declared in his address.
Additionally, Ruto announced a 50% reduction in confidential budgets for various executive offices, including the President’s office, which encompasses funds for government renovations. He also suspended non-essential travel for state and public officers and prohibited their participation in public fundraising activities, known as Harambees. The Attorney General has been directed to draft legislation for structured and transparent contributions to public, charitable, and philanthropic causes.
The President also proposed to the National Assembly a budget cut of Sh177 billion and an increase in borrowing to cover the shortfall. This additional borrowing will raise the fiscal deficit from 3.3% to 4.6%, aimed at protecting funding for critical government services. These services include hiring Junior Secondary School teachers and medical interns, funding the milk stabilization program for dairy farmers, reviving stalled road projects, and maintaining the fertilizer subsidy program.
Furthermore, the government plans to settle debts owed to coffee farmers, capitalize the Coffee Cherry Fund, and enable public sector-owned sugar mills to pay outstanding debts to sugarcane farmers. Additional funding will be allocated to the higher education sector’s new funding model and to settle arrears owed to counties.
“In keeping with the enhanced austerity measures, we have committed to implementing and aligning government expenditures with the budgetary implications of the withdrawal of the Finance Bill, 2024,” President Ruto concluded.
