In the wake of violent protests spurred by a controversial finance bill, Kenyan President William Ruto has announced significant government spending cuts. The bill, intended to raise taxes and address Kenya’s burgeoning budget deficit, led to widespread unrest, leaving over 23 people dead and resulting in the first-ever breach of the national assembly by demonstrators.
During an X-Space engagement with Kenyan citizens on Friday, Ruto explained that he had declined to assent to the contentious bill, citing “falsehood and propaganda” surrounding its provisions. The president asserted that the bill was designed to create more jobs and protect local industries, emphasizing its role in reducing Kenya’s reliance on borrowing. Currently, the country’s public debt stands at 68 percent of GDP, far exceeding the 55 percent threshold recommended by the World Bank and the International Monetary Fund (IMF).
In response to the public outcry and after extensive consultations, Ruto’s administration has decided to implement a series of austerity measures aimed at cutting governance costs. In a separate address at the State House in Nairobi, Ruto announced the removal of budgetary provisions for the offices of the first and second lady, as well as confidential budgets across various executive offices, including his own. Additionally, the budget for government renovations will be slashed by 50 percent.
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Among the most significant changes is the dissolution of 47 state corporations with overlapping functions, a move that is expected to eliminate their operational and maintenance costs. The functions of these corporations will be integrated into the respective line ministries, with affected staff transferred accordingly.
Further cost-saving measures include the suspension of hiring chief administrative secretaries and a 50 percent reduction in the number of government advisers. Civil servants who reach the age of 60 will be required to retire immediately, with no extensions permitted. Moreover, the purchase of new government vehicles will be suspended for a year, except for security agencies, and non-essential travel by state officers will be curtailed.
Ruto also announced the development of a new policy on transport for public officers and directed the attorney-general to prepare and submit the necessary legislation. This legislation will aim to create a structured and transparent mechanism for contributions to public, charitable, and philanthropic purposes.
These sweeping changes underscore President Ruto’s commitment to fiscal responsibility and transparency, particularly in light of the recent civil unrest and the urgent need to stabilize Kenya’s economy.
