Austerity Measures: Ruto’s Latest Interventions Shows He Was Not Relenting

By: Joseph Mutua Ndonga

Worth Noting:

• The President would also enumerate other challenges that stood in his way. They included the biting drought rated to be the worst in 40 years; Russia-Ukraine war and Covid 19 pandemic. Kenya was recovering from these pandemic that had ravaged the whole world.
• After the President pronounced himself, the relevant arms of the government moved with speed to unveil a raft of interventions that would see budgets allocated for travels, accommodation of state officers within and outside the country drastically slashed.
• Subsistence and out-of-pocket allowances were also targeted. Ndungu warned the top managers of state corporations that stern action will been taken against those flouting the directives which had already been approved by parliament.

A few days ago, National Treasury Njuguna Ndungu reaffirmed the commitment of President William Ruto-led Kenya Kwanza government to ensure the State Corporations and Parastatals fully complied with austerity measures that had been rolled out.

The President’s directives were very clear and remain in force.

As we know, Cabinet Secretaries (CSs) are nominated and formally appointed by the President to help him undertake and discharge his constitutional mandate.

So one can understand where CS Ndungu was coming from. He minced no word in stating that all Kenyans including the President himself must continue to live within our means.

This is only way we would steer and return our economy back on track.

After assuming office, President Ruto faulted the outgoing ‘handshake’ government for harboring insatiable appetite and reckless borrowing of foreign loans.

As a result, we have inherited the highest debts ever. There is no miracle when it comes to repayment. All of us are required to tighten our belts.

The President would also enumerate other challenges that stood in his way. They included the biting drought rated to be the worst in 40 years; Russia-Ukraine war and Covid 19 pandemic. Kenya was recovering from these pandemic that had ravaged the whole world.

After the President pronounced himself, the relevant arms of the government moved with speed to unveil a raft of interventions that would see budgets allocated for travels, accommodation of state officers within and outside the country drastically slashed.

Subsistence and out-of-pocket allowances were also targeted. Ndungu warned the top managers of state corporations that stern action will been taken against those flouting the directives which had already been approved by parliament.

All budgets allocated for expenditures must be approved by the executive boards of directors of these public entities.

The members of boards have been properly briefed. When reviewing the budgets, they must give priority to the issue of austerity measures.

Earlier, the 3-day National Executive Retreat and Parliamentary group meeting of the ruling party had elicited mixed-reactions.

For the critics of President William Ruto, they would allege he was taking Kenyans for a ride.

He did not believe in the austerity measures he had earlier unveiled.

This is because the retreat was held at a Naivasha hotel. They would not however produce an iota of evidence to prove and substantiate their claims on the cost of the retreat.

The National Executive retreat brought together the Cabinet Secretaries, Principal Secretaries and other top government official.

It was Kenya Kwanza’s second retreat. The first one was held in Nyanyuki and it was also chaired by President Ruto.

As the head of the Executive, the President had set the targets for each cabinet secretary. The latest retreat was meant to review and evaluate thier performance. I assigned you some duties. We are here to present our scorecards. If you have not met the expectations of Kenyans, you will have to go home. The buck stops with me. If my administration fails to deliver, Kenyans will not blame you, they will blame me.

The critics would not see the importance of this retreat. They would instead capitalize on sideshows.

Besides National Executive and Parliamentary group, the Judiciary and Center for multiparty democracy, an NGO known to mainly front the cause of the opposition, was also having their retreats at Naivasha hotels.

In the latter forum, Wiper leader Kalonzo Musyoka was the chief guest. Why would the critics only single out the cabinet retreat? This shows they were only playing politics.

The ‘handshake’ government led by President Uhuru Kenyatta and his partner Raila Odinga had left the economy in a very bad shape.

The duo used to hold similar retreats in most expensive hotels.

The second retreat of Kenya Kwanza in Naivasha cost much less compared to those convened by ‘handshake’ duo.

The Uhuru regime had borrowed more than Sh9 trillion from the foreign lenders. Dr Ruto assumed office at a time when loans’ repayment shedule had started maturing

He knew the consequences of failing to abide by the terms of the repayment agreements were dire.

In default, Kenya would be blacklisted and isolated by the international development partners and lenders.

This explains why President Ruto did not take the matter lightly.

He has so far lived up to his word. This is in terms of ensuring the repayments were being done on time.

This, however, does not mean that we are out of wood yet. It is worth noting that six in 10 shillings collected as taxes goes towards servicing the foreign loans. President reiterated this recently when he attended a church service in Meru.

We are left with a paltry Sh4 shillings and this is what we spend for development and recurrent expenditures.

This is showed our economy is still not doing well.

But President Ruto has been leaving nothing to chance. He is working day and night in order to ensure our economy is back on track.

In a circular released earlier by the Head of Public Service Felix Koskei, the head of state banned the senior government officials from making unnecessary travels abroad.

The travels banned include those meant for benchmarking, training symposium and exhibitions.

The travels which are necessary will be approved by his office, he stated. He also reduced the number of the staff accompanying the officer on travel.

For cabinet secretary, one or two persons. For the others, one or travel alone.

The President issued this directive after it came to his attention that these travels were consuming a huge chunk of tax payers’ monies.

During his tenure, former President Uhuru Kenyatta had rolled out some austerity measures. I’m sure Dr Ruto, who at the time was the deputy President, learns some big lessons.

Unlike Kenyatta, we know Dr Ruto is a hand-on President.

Given this scenario, I have no reason to doubt Ruto’s commitment to ensure a strict adherence to the austerity measures.

For the officers who will make luxurious travels, there will be no reimbursements and per diems. They will have to cater for all the expenses from their own pockets.

As for the necessary and approved travels, the officers will not enjoy the luxury and comfort as it used to be.

The budgets for air tickets, accommodations and allowances have been drastically cut.

They will no longer use the Aeroplane’s First Class.

While in the host countries, they will stay in less expensive hotels.

President Ruto is setting a good example. He has been avoiding attending unnecessary foreign travels.

He would only make trips that he knew would bore the fruits for Kenya. Kenyans would reap big and become the biggest beneficiary. When Dr Ruto visited the US recently, he came back with goodies amounting to billions of shillings.

Joseph Mutua Ndonga is a writer and political analyst based in Nairobi