Kenya's President William Ruto enacts Sh177 bn spending cuts

Kenya's President William Ruto addressed the nation this afternoon, unveiling significant spending cuts amounting to Sh177 billion in response to overwhelming public feedback and to foster economic sustainability. He also appointed an independent task force to conduct a comprehensive forensic audit over public debt and report their findings within the next three months. President Ruto highlighted the importance of discussing critical issues facing the nation and emphasized his commitment to transforming the country's economic landscape. The announcement comes at a crucial time when Kenya faces challenges such as taxation, debt, corruption, unemployment, and the cost of living. President Ruto expressed his condolences to the families who lost their loved ones during recent unfortunate events in the country. He reiterated the government's support for those affected and pledged to address the pressing issues that concern all Kenyans. The President emphasized the shift towards dialogue on crucial matters such as employment opportunities for the youth, business prospects, manufacturing, taxation, and debt management. He emphasized the need for a collective effort to elevate the national debate to focus on issues affecting everyone. In response to the withdrawal of the Finance Bill and the subsequent reduction in revenue targets by $346 billion, President Ruto outlined the government's decision to propose a budget cut of $177 billion and borrow the remaining amount. This measure aims to mitigate the adverse effects on vital government services while balancing the fiscal deficit at 4.6% of the GDP. The borrowed funds will be allocated to critical areas such as hiring teachers, supporting dairy farmers, reviving infrastructure projects, and settling debts in various sectors. Furthermore, President Ruto revealed a series of austerity measures aimed at streamlining government expenditures and enhancing transparency. The dissolution of 47 state corporations with duplicating functions, the suspension of filling Chief Administrative Secretary positions, and the reduction of government advisors by 50% are among the steps to be taken immediately. Additionally, budget provisions for certain offices and confidential budgets will be removed, and purchases of new government vehicles will be suspended for a year. The President also announced a halt on non-essential travel by state and public officers and prohibited their participation in public contributions or haram fees. The government will develop a new transport policy for public officers and enforce retirement age requirements for public servants to improve efficiency and accountability. These measures, coupled with upcoming changes in government, are aimed at enhancing service delivery, transparency, and maximizing resources for the welfare of Kenyan citizens. President Ruto believes that these initiatives will pave the way for economic transformation, advancing the bottom-up economic agenda and creating more opportunities for the people of Kenya.