Nairobi — The government has reviewed an initial announcement to cut the national budget by Sh346 billion in a bid to sustain key programmes.
President William Ruto said on Friday the National Treasury will instead cut spending to Sh117 billion to make room for key commitments including the hiring of additional Junior Secondary School teachers.
"Over the last few days, our treasury team has been assessing the adverse impact of either reducing the budget by the entire Sh346 billion or borrowing the full amount," he stated.
"We have since struck a middle ground and will be proposing to the National Assembly a budget cut of Sh177 billion and borrow the difference. The additional borrowing will increase our fiscal deficit from 3.3 per cent to 4.6 per cent and will be used to protect the funding of critical government services," President Ruto stated.
President Ruto listed several critical government initiatives that will receive continued funding, including the hiring of medical interns, support for dairy farmers, road infrastructure projects, fertilizer subsidies, and settlements of debts owed to farmers in various sectors.
In addition to the financial adjustments, President Ruto announced a series of austerity measures aimed at optimizing government expenditure and enhancing transparency:
- Dissolution of 47 State Corporations to eliminate overlapping functions and reduce operational costs.
- Suspension of filling Chief Administrative Secretaries positions.
- 50 per cent reduction in government advisors within the public service.
- Removal of budget lines for offices of First Lady, spouses of Deputy President, and Prime Cabinet Secretary.
- Suspension of non-essential travel and participation in public contributions by state and public officers.
"These measures are part of our commitment to enhance efficiency and transparency in serving the people of Kenya," President Ruto affirmed.
"We are determined to improve the quality of services and ensure maximum value for the resources entrusted to us."
