Nairobi — President William Ruto has issued a stern warning to loss-making parastatals, emphasizing the need for stringent financial management. He urged profitable entities to curb wasteful expenditure and channel profits back to the Treasury.

Addressing chairs and CEOs of State corporations at State House Nairobi, President Ruto highlighted the detrimental effects of prolonged losses on the nation's economy.

He stressed the imperative for government agencies to operate within their means, with expenditures never surpassing revenues.

Expressing concern over the misuse of public resources, President Ruto underscored the importance of rigorous scrutiny of government budgets and expenditures. He proposed leveraging technology to detect improper payments and ensure optimal value for money.

The President outlined a comprehensive plan to reduce expenditure, including the consolidation of functions to eliminate duplication and inefficiency. He called for the closure of unproductive parastatals and the optimization of resources across all sectors.

President Ruto emphasized the urgency of achieving balanced budgets within three years, signaling a shift towards fiscal responsibility. He directed CEOs to implement a 30% reduction in recurrent budgets to streamline operations.

Furthermore, commercial State corporations were instructed to remit 80% of their profits after tax to the National Treasury, with clear guidelines for the allocation of the remaining 20%. Regulatory institutions were mandated to remit 90% of surplus funds, with strict enforcement to ensure compliance across the board.

In conclusion, President Ruto reaffirmed the government's commitment to prudent financial management and accountability. He called on all stakeholders to uphold fiscal discipline and contribute to the nation's economic stability.