Kenyan President William Ruto has announced a series of sweeping actions aimed at enforcing stringent austerity measures within his administration.
Among the most significant steps is the dissolution of 47 state corporations. President Ruto stated that these parastatals, which have overlapping mandates, will be disbanded immediately to streamline government operations and eliminate redundancy.
During his State of the Nation address at State House in Nairobi on Friday, Ruto elaborated on the move, saying, “47 state corporations with overlapping and duplicative functions will be dissolved, resulting in the elimination of their operational and maintenance costs. Their functions will be integrated into the respective line ministries, and staff currently employed by the affected corporations will be transferred to ministries and other state agencies.”
This move is part of a broader effort to align government expenditures with the budgetary constraints following the withdrawal of the Finance Bill, 2024. The bill, which proposed tax increases, had sparked violent protests resulting in at least 40 fatalities.
In a surprising turn, Ruto also announced the withdrawal of budget allocations to the office of the First Lady. He declared, “Budget lines providing for the operations of the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary shall be removed.”
Additionally, budgetary provisions for confidential expenses in various executive offices, including the president’s office, will be eliminated. The budget for government renovations will be cut by 50%.
Ruto also introduced measures affecting public servants, stipulating that those who reach the retirement age of 60 must retire immediately, with no extensions. The purchase of new motor vehicles by the government will be suspended for 12 months, except for security agencies. A new transport policy for public officers will be developed during this period.
Furthermore, Ruto suspended all non-essential travel by state and public officers and halted the filling of Chief Administrative Secretaries positions. He also announced that the number of advisors in government would be reduced by 50% within the public service, effective immediately.
“We are determined to carry out these and other changes to improve the quality, efficiency, and transparency of serving the people of Kenya and ensure that citizens receive maximum value for their resources from a public sector that prioritizes their welfare,” Ruto stated.
While these radical measures are designed to cut unnecessary expenditure and ensure more effective resource allocation, they are expected to significantly impact the structure and functioning of government institutions in Kenya.
