Kenya: President Ruto Directs 10% Budget Cuts in Ministries Amid Global Economic Stress

President William Ruto.
3 October 2023

Nairobi — Government agencies have been directed to slash their expenditures by 10 percent in the current financial year in order to align their expenditures with the available resources.

President William Ruto issued the directives as part of austerity measures to ensure the state agencies adjust to global economic crisis.

"There is need for the Government to exercise prudence in resource utilization, firmly stating that wastage and corruption would not be tolerated," President Ruto stated during a cabinet meeting.

The move is aimed at bringing back sanity in spending in public service and unshackle the country from the burden of public debt.

The Head of State issued a warning to government officials seeking to bypass the use of a unified payment system, underscoring the necessity for better oversight.

Pressure has been mounting on the Kenyan government to reduce the high cost of living triggered by rising food and fuel prices.

This is largely because increasing taxes would overburden tax payers whose disposable incomes have been hit by the high cost of living while on the other hand expenditure cuts could choke further growth in output.

The Kenya Kwanza Alliance government is pursuing a fiscal consolidation process, including putting a lid to fresh borrowing as part of measures to kickstart the recovery of an economy reeling from rising inflation, shortage of the US dollar and shrinking forex reserves.

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