On Monday, August 5, President William Ruto signed the Supplementary Appropriations Bill into law. This legislation paves the way for a substantial reduction in government expenditure, amounting to Ksh145.7 billion.
The signing ceremony, which took place at State House, was attended by Deputy President Rigathi Gachagua.
Budget Cuts Introduced in the Bill
The bill introduces wide-ranging budget cuts across various government institutions and sectors.
Notably, the Presidency itself, encompassing the offices of both the President and Deputy President, will experience a considerable reduction of Ksh6 billion in its allocated funds for the 2024/2025 Financial Year.
Other key areas affected by the budget cuts include:
1. The National Treasury: A reduction of Ksh7 billion
2. Transport sector: A slash of Ksh17.3 billion in recurrent expenditure, impacting road projects
3. Medical services: Various development projects will see a reduction of Ksh6.9 billion
The bill’s journey through the legislative process was swift, with the National Assembly approving it with amendments just a week prior, on July 31.
Hon. Ndindi Nyoro, the sponsor of the Bill and a member of the Budgets and Appropriations Committee, provided insight into the scale of the financial adjustments:
“The budget we are considering is a budget of roughly Ksh 3.84 trillion (or thereabout). If you look at the revenue side, we have been able to downgrade our projections. And other than the Ksh 2.9 billion we anticipated in the main budget, we will now be rising just above Ksh 2.6 trillion.”
The Kiharu MP further elaborated on the comprehensive nature of the cuts, detailing how they have been distributed across all branches of government:
“The cuts have been done in all levels of government. The cuts have been spread across the two levels of government. Even the county governments are losing Ksh 20 billion in their equitable share out of the realities that we face at the moment.”
The breakdown of the cuts across the arms of government is as follows:
– Executive: Ksh139.8 billion
– Parliament: Ksh3.7 billion
– Judiciary: Ksh2.1 billion
Junior Secondary School interns Funds Untouched
Despite the extensive budget reductions, the bill maintains certain critical allocations. Notably, the Ksh18.7 billion earmarked for the confirmation of Junior Secondary School interns into permanent and pensionable positions remains untouched.
MP Timothy Kipchumba, a member of the Education Committee, confirmed this commitment:
“As a Member of the Education Committee we wish to confirm that the confirmation of 46,000 Junior Secondary School teachers will take place as well as the employment of 20,000 teachers.”