- Ruto has announced measures the government was taking to cut costs.
- President said there will be no extension of retirement tenures.
Image: FILE
President William Ruto has directed public servants who have attained the retirement age of 60 to proceed to retirement.
Ruto, who was announcing measures the government was taking to cut costs, said there will be no extension of tenures of public servants who are 60 and above, whatsoever.
Addressing the nation from State House, Nairobi, Ruto noted that the withdrawal of the Finance Bill, 2024 has resulted in reduction of revenue targets by Sh346 billion.
He said the National Treasury has been assessing the impact of either reducing the Budget by Sh346 billion in full or borrowing the amount.
“Cutting the entire amount in our assessment, would significantly and drastically affect the delivery of critical government services,” he noted.
In keeping with enhanced austerity measures, Ruto said his administration has committed to implement and align government expenditure with the consequences of the withdrawal of the Finance Bill, 2024.
He said several actions would be taken with immediate effect towards the realisation of the new Budget.
On June 28, Ruto rejected the Finance Bill and ordered a Sh346 billion budget cut.
Concurrently, he signed the "Appropriations Bill 2024" into law.
These budget cuts impacted national and county governments, including the executive, legislature, judiciary, and constitutional commissions.
Originally published in the Kenya Gazette on May 9, 2024 and subsequently passed by Parliament on June 25, 2024 amidst nationwide demonstrations, the Bill proposed several amendments, including the introduction of new taxes among other significant measures likely to increase the cost of living.