Ruto’s Bold Economic Overhaul: Kenya’s New Fiscal Strategy
President William Ruto
Ruto Unveils Stringent Economic Measures in National Address
President William Ruto announced sweeping austerity measures aimed at restructuring government spending in response to the recent Finance Bill withdrawal.
Dissolution of Redundant Government Bodies
In a televised speech from State House, Nairobi, President Ruto disclosed plans to dissolve 47 government bodies sharing similar functions, with staff absorbed into parent ministries. This move is intended to streamline operations and cut down on redundant expenses.
Suspension of CAS Appointments and Advisor Reduction
Ruto suspended the appointment of Chief Administrative Secretaries (CAS) and vowed to halve the number of advisors to the Executive. These steps are part of efforts to trim down the bureaucracy and optimize government efficiency.
Cuts in Expenditure and Budgetary Adjustments
Moreover, Ruto announced the removal of budget lines for operations like those of the First Lady, Deputy President’s Spouse, and the Prime Cabinet Secretary. He emphasized reductions in confidential expenditures across executive offices, including his own, alongside a 50% cut in government-wide renovation budgets.
Strict Retirement Age Policy for Public Servants
Public servants reaching the age of 60 will now be required to retire immediately, without extensions. This measure aims to manage the workforce effectively and open opportunities for younger professionals.
Moratorium on Government Vehicle Purchases
The President imposed a 12-month moratorium on acquiring new government vehicles, excluding those for security agencies. He outlined plans to develop a new transportation framework for public officers to enhance efficiency.
Travel Restrictions and Ban on Harambees
Effective immediately, all non-essential travel by State and public officers is suspended. Additionally, Ruto announced a ban on State officers and public servants participating in harambees, signaling a shift towards transparent and structured contributions for charitable causes.
Legislative Directives and Future Government Changes
Ruto directed the Attorney General to draft legislation formalizing these measures and establishing mechanisms for transparent charitable contributions. He hinted at impending changes in government, potentially involving a cabinet reshuffle in the near future.
President Ruto concluded his address by emphasizing the necessity of these measures to align government expenditure with fiscal realities. He expressed confidence that these steps would pave the way for a more efficient and responsive administration in Kenya’s evolving economic landscape.
