President William Ruto has praised Members of Parliament who supported the controversial Finance Bill 2024, calling them “true heroes of Kenya” despite the bill’s ultimate withdrawal following widespread protests.
In a candid interview at State House on June 30, Ruto acknowledged that the bill’s intentions and potential benefits were not adequately communicated to the public.
“MPs are not fools and are not mad. They are the people who saw the opportunity for us to unchain ourselves from the debt trap. The finance bill was going to take Kenya very far. It was not an easy decision, but I had to take it due to the political reality,” Ruto said
Finance Bill Withdraw Forces 1T Shilling Borrowing, Spending Cuts
The President explained that the bill’s withdrawal would have significant financial repercussions. Kenya will now need to borrow approximately 1 trillion Kenyan Shillings to fund the 2024-2025 budget.
This borrowing will impact various sectors and initiatives, including:
1. The confirmation of 46,000 Junior Secondary School teachers
2. A planned 2 billion Shilling support package for farmers
3. Addressing the coffee debt and cherry fund
4. Resolving the debt of farmers in Mumias
In response to the budget shortfall, Ruto announced several austerity measures. He hinted that his administration plans to eliminate funding for the offices of the First and Second Ladies. He also hinted at the potential scrapping of Chief Administrative Secretary (CAS) positions, stating that no new CAS appointments would be made until the economy can sustain such roles.
“No CAS will be appointed until we have an economy that can support more opportunities”
Ruto expressed his frustration with the situation, emphasizing his efforts to free Kenya from its “debt trap.” He portrayed the Finance Bill 2024 as a critical component of this strategy, designed to increase revenue and reduce reliance on borrowing.
