President William Ruto has implemented budget cuts demanded by Gen Zs and other reform agitators, dealing a blow to top guns in his administration and bigwigs enjoying the trappings of power.
Political bigwigs enjoying exit benefits are set to lose millions of shillings taxpayers cater for to keep them comfortable in retirement.
Former Prime Minister Raila Odinga’s benefits have been reduced by Sh7.2 million. Among the cuts are for his local travel by Sh2.4 million and hospitality at Sh2 million.
Former President Uhuru Kenyatta’s benefits have been slashed by Sh92 million, affecting his domestic travel by Sh28 million and Sh24 million for foreign trips.
Uhuru’s budget for entertaining his visitors among other hospitality needs is down by Sh24.5 million. Estimates show his furniture and general equipment budget of Sh10 million has been slashed.
Former Vice President Kalonzo Musyoka (Wiper leader) has been hit with Sh8.8 million budget cuts while his compatriot Moody Awori has his allocation slashed by Sh2.1 million.
According to supplementary estimates before Parliament, the President has taken the lead, ceding Sh1.8 billion that was allocated to his office in the current financial year.
The Executive Office of the President had been allocated Sh5.4 billion but the budget has since been slashed to Sh3.5 billion.
The planned refurbishment of Harambee House has been suspended.
The President’s office, the first supplementary estimates for the 2024-24 fiscal year show, has also dropped plans for research and advisory forums.
State House’s budget has also been reduced by Sh5.1 billion including Sh3.6 billion for recurrent and Sh1.55 billion development expenses.
Deputy President Rigathi Gachagua’s office budget has been slashed by Sh2.2 billion from the initial Sh4.8 billion and will now make do with Sh2.6 billion.
Part of the money was set aside for refurbishing the Harambee House Annex and the DP’s official residence.
Prime Cabinet Secretary Musalia Mudavadi has not been spared the cuts as his office has lost Sh419 million, besides Sh183 million for the state departments under the office.
Budgets for the office of First Lady Rachel Ruto and that of Gachagua’s spouse Dorcas have also been scrapped in the changes Treasury attributed to the abandoned Finance Bill, 2024.
In the estimates before the MPs, Sh696 million that was allocated to the office of the First Lady has been removed, as has the Sh557 million that was allocated to the office of the spouse of the Deputy President.
Job losses loom as the brutal cuts have affected basic salaries for their employees, personal allowances, local travel, foreign travel, and hospitality expenses.
Overall, the Ruto administration targets to slash the budget by Sh156 billion, being Sh122 billion for development and Sh34 billion for recurrent expenditure.
“The reduction is on account of budget rationalisation,” Treasury Principal Secretary Chris Kiptoo said in a notice to Parliament.
To seal the funding gap of over Sh340 billion, Ruto's team said it would have to borrow a further Sh167 billion.
Plans by Gachagua's wife to screen 12,000 boys for drug rehabilitation, 18 youth camps, training 2,400 boys, mentorship and coaching 3,000 others and support for 1,000 widows have been dropped.
"It is okay that the country doesn't want the second lady to have a budget, but I will continue to fight for the boy child even without the budget," Dorcas said recently.
"That is a vision and passion I have for the boy child. I cannot stop because I started even before I was in office; I believe you and I can be able to make it."
Rachel's women empowerment, tree planting, and child mentorship programmes stand cancelled in the face of the budget cuts.
Following the cuts, Treasury books show that the planned upgrade of the Government Printer has now been aborted.
The budget was to be spent on five modern assorted machines and equipment for print production and refurbishment of the offices.
Ruto, in implementing the cuts, has not spared any state agency save for the Department of Economic Planning, which is tipped for Sh4.9 billion more.
County governments, however, are set to benefit from an additional Sh10.8 billion, pushing their allocation for the current year to Sh410 billion.
The move may come as a relief for governors who had lamented when the National Treasury indicated that the devolved units would lose Sh5 billion.
The budget for pensions has been increased by Sh23 billion, of which a chunk of Sh13 billion is in respect of gratuity, signalling imminent mass exits from the public service.
President Ruto recently hinted at a plan to retire public servants aged above 60 years.
In the changes, the cash-starved Judiciary has suffered a hit of Sh1.3 billion, of which Sh800 million was meant for court construction projects that now stand suspended.
Parliament, for its part, is set to lose over Sh3 billion, being Sh1.8 billion in the case of the National Assembly and Sh1.3 billion for Parliamentary Joint Services.
Parliament’s budget for construction of Bunge Tower, installation of a security system, purchase of buildings, and refurbishment of various buildings as well as purchase of land for a studies centre have been affected.
The Senate budget has been slashed by Sh544 million while that of the Teachers Service Commission has been reduced by Sh10 billion, according to the supplementary estimates.
The cross-cutting reductions have affected the Foreign Affairs ministry budget by Sh3 billion, Sh3.1 billion for Technical Vocational Education and Training, and Sh5 billion for Higher Education.
Budgets for primary and secondary schools have also been reduced by Sh14.9 billion in the proposed budget cuts MPs are to consider after ending their recess on July 23.
The National Assembly has invited Kenyans to give their views on the cuts to the Budget Committee chaired by Kiharu MP Ndindi Nyoro by July 22.
The National Treasury’s allocations have been reduced by Sh8 billion while road projects are set to lag further behind in the face of Sh14 billion funding cuts.
Transport projects to the tune of Sh3.2 billion are also set to suffer, as are plans to settle the landless and process title deeds for underserved members of the population.
Energy projects, including rural electrification, are also set to suffer setbacks with the proposed Sh18 billion budget cut.
The budget for the Office of the Auditor General has been reduced by Sh862 million, including the Sh400 million it sought to construct the Mombasa office block.
The Department of Forestry budget has been reduced by Sh984 million, Sh1 billion for the Public Service, Agriculture (Sh1.7 billion), Water (Sh3.7 billion), Medical Services (Sh7 billion), and Sh1.1 billion in respect of Correctional Services.
Following the cuts, the government has suspended the construction of civil registries, police houses, and police stations as well as the purchase of security equipment.
Plans to refurbish county commissioners’ offices and construct NGAO offices have also been dropped, and so are works at the forensic laboratory.
All planned purchases of foreign mission premises as well as rehabilitation works on existing ones have been suspended.
Staff recruitment also stands suspended at various offices after the budget cuts attributed to the government’s failure to net Sh340 billion tax.
When he announced the cuts, President Ruto said he would spare budgets for hiring 46,000 JSS teachers, recruitment of medical interns, supporting coffee, milk and sugar farmers, and the fertiliser subsidy.
The Head of State also suspended purchases of new vehicles for all government agencies, except for security agencies, and non-essential travel for all civil servants.