President Ruto Enhanced Austerity Measures Seeks A Budget Cut Of Sh177 Billion
The Mt Kenya Times 
President William Ruto
By: Joseph Mutua Ndonga
Worth Noting:
- How will this happen? President Ruto unveiled a raft of austerity measures. He said he will shortly submit the proposals to parliament.
- My plan is to see a budget cut of Sh177 billion and borrow the balance to bridge the gap.
- In the shelved Finance Bill 2024, we had planned to raise Sh346 billion more.
- It is worth noting that this is not the first time the President is pitching tent for austerity measures. During the National Prayer Breakfast at Safari Park Hotel held two days after returning back to the country, Dr Ruto stepped out to set the record straight.
- Contrary to the false hoods that were being peddled around, the trip to the US only cost the Kenyan tax payer less than Sh10 million.
For the first time since he assumed office, President William Ruto’s leadership recently came under a vicious attack and strong test.
For two weeks, the young people, under the banner of Generation-Z, took to the streets to express their reservations in the way he was running the government.
Many feared this would morph up into a full blown rebellion that would culminate to toppling him from power.
The President however had a different opinion. This youth protests did not pose any threat.
He had already crafted a counter strategy to deflate the threats. He was waiting for the right time.
The enhanced austerity measures stood out as one of the key measures.
When unveiling this intervention, the President stated. As you are aware, I heeded the call of the young people and refused to sign the Finance Bill 2024.
I want however to assure Kenyans that my government will implement all the projects that had been lined up.
How will this happen? President Ruto unveiled a raft of austerity measures. He said he will shortly submit the proposals to parliament.
My plan is to see a budget cut of Sh177 billion and borrow the balance to bridge the gap.
In the shelved Finance Bill 2024, we had planned to raise Sh346 billion more.
It is worth noting that this is not the first time the President is pitching tent for austerity measures.
During the National Prayer Breakfast at Safari Park Hotel held two days after returning back to the country, Dr Ruto stepped out to set the record straight.
Contrary to the false hoods that were being peddled around, the trip to the US only cost the Kenyan tax payer less than Sh10 million.
I hope this debate will now come to an end.
He however assured Kenyans that the relevant arms of the government were looking at this matter. The critics had alleged without providing any evidence that he had spent Sh200 million to hire the presidential jet.
The President added: It is good to have genuine friends.
Under my leadership, I have managed to reach out to well-connected and endowed individuals across the world and they are now our friends.
These friends paid the lion share of money we spent in this trip.
To me, Sh10 million was a just a drop in the ocean.
This is if we compare to the goodies President Ruto secured during this state visit.
After the bilateral talks with his host, President Joe Biden, the two leaders addressed a joint press conference. Kenya reaped big. The agreements and deals that Kenyan delegation signed with the US government and her companies were worth Sh1.2 trillion.
I had earlier written an article in this column. These were my observations.
In recent past, I heard the critics of President William Ruto claiming that his austerity measures were not bearing the fruits.
To me, these arguments were speculative, ill-advised and malicious.
This is because they were not based on evidential based research and analysis.
A few weeks ago I read a statement released by National Treasury cabinet secretary Njuguna Ndungu.
He unveiled the new directive by President William Ruto to have the employees of all State Corporations and Parastatals be subjected to austerity measures.
The directive took effect immediately. This once again reaffirmed the commitment of the President to walk the talk.
As we know, Cabinet Secretaries (CSs) are nominated and formally appointed by the President to help him undertake and discharge his constitutional mandate.
As such, the CS minced no word in stating that all Kenyans including the President himself must continue to live within our means.
This is the 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.
It is worth noting that the ‘handshake’ government of President Uhuru Kenyatta and his co-principal Raila Odinga 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 debts. President Ruto 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, learn 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 thier 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, accomodation 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
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