- Government Cut Down Sh40billion in Salaries and Operation Costs
- The bill outlines total reductions of Sh145 billion,
President William Ruto has cut down the budget for Salaries and recurrent expenditure by Sh40 billion in the just signed Supplementary Appropriation Bill.
This bill includes significant adjustments aimed at reducing expenditures while maintaining essential services in agriculture, health, and education, and includes remuneration enhancements for security officers.
Following the withdrawal of the Finance Bill 2024 and the resulting revenue shortfall of Sh344 billion, the state embarked to cost cutting measures.
The bill outlines total reductions of Sh145 billion, with Sh40 billion cut from recurrent expenditures and Sh105 billion from development projects.
Specific reductions include Sh139.81 billion from the Executive, Sh3.7 billion from Parliament, Sh2.1 billion from the Judiciary, Sh6 billion from the State House and Deputy President, Sh7 billion from the National Treasury, Sh6.9 billion from medical services projects, and Sh17.3 billion from road and transport projects.
Government Cut Down Sh40billion in Salaries and Operation Costs
Key allocations in the bill are targeted at supporting critical sectors. In agriculture, the bill provides Sh7.5 billion for a fertilizer subsidy, Sh3 billion for the Coffee Cherry Fund, Sh2 billion for debt waivers for coffee farmers, Sh2 billion for milk coolers, Sh1.5 billion for milk price stabilization, and Sh0.7 billion to support sugar farmers.
To support education reforms, the Supplementary Appropriations Act has allocated Sh120.7 billion, including confirmation of all Junior Secondary School teachers.
In the plan Sh18.7 billion is allocated for the confirmation of junior secondary school intern teachers, Sh31.3 billion for the Higher Education Loans Board (HELB), and Sh17 billion for University Funding Board scholarships.
For health, the bill allocates Sh3.7 billion for a medical internship program, Sh4 billion for a primary healthcare fund, and Sh4.5 billion for allowances and equipment for community health volunteers.
Salary increases for security officers have also been taken care of, with the new law setting aside Sh3.5 billion for the enhancement of remuneration for officers serving in various agencies in line with the recommendations of the National Taskforce on Police Reforms.
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These adjustments and allocations are designed to address the budget shortfall while ensuring the continued delivery of essential services across key sectors in Kenya.
The President assented to the Supplementary Appropriations Bill on Monday after it was passed by the National Assembly on July 31, 2024.
Despite the fiscal constraints, the new law safeguards key critical expenditures, including about Sh20 billion to support farmers and enhance production and productivity.
Additionally, the new Act proposes a reduction in recurrent and development expenditure for the three arms of government, constitutional commissions and independent offices.
