NAIROBI, Kenya, Jun 26 – President William Ruto says he has welcomed the loud’ message by Kenyans protesting against the Finance Bill 2024.
Speaking after declining to sign it into law, the President further pledged firm and expeditious anti-graft efforts.
“Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede and therefore I will not sign the 2024 Finance Bill and it shall subsequently be withdrawn,” the President indicated.
He however emphasized that the withdrawal of the bill portended budget deficit with no additional taxation mechanism to finance the Sh3.9 trillion budget in the incoming financial year.
He pledged to lead from the front in the implementation of further austerity measures saying operational expenditure in the three arms of government as well as devolved units must be cut.
“In the Presidency and Office of the Presidency. We will reduce confidential vote, travel budget, hospitality, purchase of motor vehicles, renovations and other expenditure,” he stated.
President Ruto pointed out that his administration is committed to listen to the will of the people assuring he will be ruthless to deal with corruption in the country.
“We must live within our means respecting the very loud message that is coming from the people of Kenya. I will have conversation with stakeholders on this matter as we chart our way forward,” the President said.
The Head of State insisted that various development projects which are pending will face a setback due to budget cuts given the calls by Kenyans for a ‘leaner’ budget due to harsh economic times.
“Minus the Finance Bill it means some of the development programs amounting Sh 200B we will have to cut some, others even delay until next year, some we will have to cancel because it’s the nature of the things and Kenyans have said they want a leaner budget,”President Ruto said.
Budget Cuts
As MPs debated the finance bill,National Treasury had submitted a statement to the National Assembly announcing contingency cuts amounting to Sh1.52 trillion for the 2024/2025 financial year should the Bill not sail through.
Budget and Appropriation Chairperson Ndindi Nyoro told Members of Parliament that Treasury will have no option but to slash the budget in various sector due to finance deficit, if the bill hits a snag.
Proposed budget cuts include Sh900 billion (for provision of sanitary towels) recurrent expenditure cut under the National Government Affirmative Action Fund (NGAAF) and a further Sh600 million cut under the medical vote.
Also included is Sh15 billion cut from the National Government- Constituency Development Fund (NG-CDF) kitty, Sh15.1 billion from ongoing roads projects, Sh11.6 billion from various projects under the water works development agencies and a further Sh7.75 billion from Security Operations and Modernization under Ministry of Defence.
Security operations under Internal Security will be slashed by Sh2 billion, Reduction in the budget for various Regional Development Authorities Sh4.6 billion.
Foreign relations and diplomacy Sh1.85 billion Ongoing TVETs and TTIs projects Sh800 million, Funding for the Differentiated Unit Cost model in universities Sh2.1 billion, Higher Education Loans Board (HELB) Sh3.2 billion and the University infrastructure projects by Sh3.0 billion.
Infrastructure for primary and secondary schools is facing a proposed budgetary cut of Sh1.6 billion, School feeding program Sh1.8 billion, Kenya Revenue Authority (KRA) Sh4.7 billion, Kenya Airways Sh 1 billion and Civil Servants Insurance Scheme Sh1 billion.
Equalization Fund arrears 1 billion, Pending Bills Sh5 billion, Provision for Medical Interns Sh3.7 billion and Managed Equipment Service (MES) under state department for medical services Sh1 billion.
CS Ndungu is seeking slashing the budget of Office of the President by Sh451 million and a further Sh500 million from operations under State House.
Ethics and Anti-Corruption Commission (EACC) will lose Sh200 million, office of the Director of Public Prosecutions Sh195 million,
Source: capitalfm
