In a bid to curb the growing displeasure of the public, President William Ruto has today announced a raft of austerity measures to reduce government expenditure.
The measures include dissolving parastatals whose functions overlap, cutting down budgets for some government offices, and suspending the appointment of Chief Administrative Officers (CASs), among others.
The Head of State on Friday, July 5 at State House, Nairobi announced the dissolution of 47 State Corporations that have overlapping mandates, saying that the action will reduce the ever-ballooning wage bill.
"The 47 state corporations with overlapping will be dissolved and their mandate transferred to ministries and state agencies," said Ruto.
Consequently, the offices of the First Lady, the Second Lady, and the office of the Spouse of the Prime Cabinet Secretary will not be funded effective July 1, 2024.
In the same breath, President Ruto has also banned all State officers from participating in fundraising activities with immediate effect.
"The Attorney General is hereby directed to prepare and submit legislation to this effect and develop a mechanism for structured and transparent contribution for public, charitable, and philanthropic purposes," Ruto stated.
Government advisers
Another austerity measure taken by the President is the reduction of the number of advisers in the government by 50 per cent.
"The number of advisers in government shall be reduced by 50 per cent within the public service with immediate effect," he said.
“Similarly, the budgetary provisions for confidential budgets in various Executive offices, including my office, shall be removed, and the budget for renovations across the government reduced by 50 per cent,” he announced.
Further, public servants who have attained the retirement age of 60 years will be required to proceed on retirement immediately, with “no extensions to their tenure of service.”
Ruto has also banned all State officers from participating in fundraising activities with immediate effect.
"The Attorney General is hereby directed to prepare and submit legislation to this effect and develop a mechanism for structured and transparent contribution for public, charitable and philanthropic purposes," he stated.
The President has promised to announce more key changes in his government shortly.
Taskforce
Ruto has further established an independent task force to conduct a forensic audit of the country’s public debt, responding to growing public concerns. He emphasised the importance of this move in addressing the widespread dissatisfaction regarding government debt management.
"I have today appointed an independent task force to carry out a comprehensive forensic audit of public debt, with a report due in the next three months," Ruto said.
The audit aims to clarify the extent and nature of the public debt, detailing how resources have been used.
"The task force will provide recommendations for managing the public debt sustainably. This action is necessary after the withdrawal of the Finance Bill, 2024, which has reduced our revenue target by Sh346 billion," he explained.
