- The government has banned the procurement, printing and production of corporate wear.
- Printing of t-shirts, shirts, tracksuits, and any branded clothing items by ministries has been frozen.
Image: FILE
The government has issued a circular directing accounting officers across ministries, corporations and state agencies to tighten their belts with new austerity measures.
In the communication signed by President William Ruto's Chief of Staff and Head of the Public Service Felix Koskei, there will be no promotional materials and merchandise procurement.
The government ordered that accounting officers suspend and immediately cease the procurement, printing and production of corporate wear; including but not limited to t-shirts, shirts, tracksuits, and any other branded clothing items.
Also to be suspended immediately is the purchase of promotional merchandise such as calendars, diaries, umbrellas, power banks, key holders, bags, flasks, cups, branded traditional blankets/"Shukas and notebooks.
Koskei said the new austerity measures are part of the government's measures to reduce its expenditures on non-essentials and address wastage in government.
"In that regard, and to further streamline expenditures and optimize the utilization of public resources; all ministries, state departments, and state corporation or agencies are directed to optimize their operations and rationalize all non-priority expenditure items,'' Koskei said in the circular dated March 18, 2024.
The latest directive is part of the Kenya Kwanza government's measures to redirect public resources to priority areas supporting the Bottom-up Economic Transformation Agenda(Beta).
In steering the nation towards an economic renaissance, the government is implementing the Beta within the framework of a macroeconomic strategy focused on fiscal consolidation.
"The policy on fiscal consolidation is anchored upon enhanced revenue mobilization as well as austerity measures underpinned by the rationalisation of non-priority expenditure and implemented in a manner that nevertheless protects essential social development spending," Koskei said.
Parliament has approved the 2024 Budget Policy Statement (BPS) themed "Sustaining Bottom-Up Economic Transformation Agenda for Economic Recovery and Improved Livelihoods.''
Last week, National Treasury Cabinet Secretary Njuguna Ndung'u issued a circular to accounting officers that the ministry would reallocate any money set aside for non-priority expenditures.
Principal Secretaries are accounting officers of state departments, CEOs, and heads of independent offices and commissions.
“The National Treasury will critically review budget proposals for the use of goods and services by MDAs and where necessary make reallocations from less productive areas,” the CS said.
In further stringent measures, the Treasury boss says profit-making state parastatals would survive on their own starting next financial year.
“SAGAs with a capacity of generating revenues should be assessed critically to wean them off the exchequer funding with effect from July 1, 2024,” he said.
Despite declaring the measures, President Ruto’s administration has come under fire over luxury spending.
Reports by the Controller of Budget and Auditor General have on numerous instances reported extravagance continued unabated.