President Ruto Signs Appropriations Bill Amid Budget Cuts

President William Ruto signs the Appropriations Bill, 2024 at State House, Nairobi on Friday, June 28, 2024.

President William Ruto has signed the Appropriations Bill, 2024 into law, ensuring the continuity of government operations following the withdrawal of the Finance Bill, 2024.

Government Operations Secured

In a statement to newsrooms, President Ruto emphasized the critical role of the Appropriations Bill in maintaining essential government services until a supplementary budget is prepared by the Treasury.

Budget Adjustments Following Rejection of Finance Bill

The President highlighted that the rejected Finance Bill, 2024, which aimed to generate Ksh.346 billion in revenue, necessitated immediate adjustments in government expenditures across all levels.

Presidential Directive and Legislative Actions

President Ruto directed the National Treasury to swiftly prepare supplementary estimates to align with reduced revenue expectations from the rejected Finance Bill. He also referred the County Allocation and Revenue Bill back to Parliament for necessary reductions.

Constitutional Mandates and Procedural Clarity

Citing constitutional provisions, President Ruto clarified his decision to decline signing the Finance Bill, triggering procedural discussions amid parliamentary recess.

Immediate Governmental Response

He instructed all accounting officers to prioritize critical services within a 15% budget limit until the revised budget is approved, ensuring prudent financial management during the transition period.

Parliamentary Engagement and Legislative Amendments

President Ruto mandated the National Treasury to submit amendments to the Division of Revenue Act 2024 to reflect reduced revenues, underscoring the collaborative effort needed between the Executive and Legislature.

Debates and Legal Frameworks

The decision sparked debates over the President’s constitutional powers in light of parliamentary recess, necessitating formal procedures to avoid legal ambiguities.

Future Financial Planning

Looking ahead, the government faces the task of managing fiscal policies and public expenditures in alignment with economic realities and legislative mandates.

President Ruto’s decisive actions underscore the government’s commitment to fiscal responsibility and the provision of essential services despite financial challenges posed by legislative developments.