Kenya cuts government spending as Ruto moves to salvage public anger

By Andrew Wasike

NAIROBI, Kenya (AA) - President William Ruto on Friday announced significant cut in public spending, a step seen as addressing the rising public anger after 39 people were killed during protests against now abandoned tax hike.

Speaking from State House in the Kenyan capital Nairobi, Ruto detailed several measures aimed at reducing government expenditure and addressing economic challenges.

"The number of advisors in government shall be reduced by 50% within the public service with immediate effect," Ruto said.

He added: "Budget lines providing for the operations of the office of the first lady, spouse of the deputy president, and prime cabinet secretary will be removed."

Ruto also addressed travel and participation of state officers, declaring, "All nonessential travel by the State and Public Officers is hereby suspended. No state officer shall participate in public participation or Harambees (community fundraising events) going forward."

"After extensive consultations, we will be proposing to Parliament a budget cut of Ksh177 billion ($1.2 billion) and borrowing the difference Ksh169 billion ($1.1 billion)," Ruto said.

The president revealed plans to dissolve 47 state corporations, stating, "The 47 state corporations which overlap will be dissolved and their mandate transferred to ministries and state agencies," noting that more government changes are to come.

Ruto also appointed a task force to address public debt issues.

"I have appointed an independent task force to carry out a comprehensive forensic audit of our public debt, and report to us in the next 3 months," he announced.

Addressing the recent protests, Ruto expressed his condolences to the youth who have died due to getting shot by police.

"I extend my deepest condolences to those who lost their lives because one life lost is a life too many. The government of Kenya will support all those who lost their lives and those who are injured," he said.

At least 39 people were killed in protests, which began on June 18 over planned tax hikes, according to a report by the state-funded Kenya National Commission on Human Rights (KNCHR).

The Finance Bill 2024 that brought about the unrest was a cornerstone of Kenya's agreement with the International Monetary Fund (IMF), aimed at addressing the country's fiscal challenges, it included tax increases aimed at raising more than $2.7 billion in revenue for the government's ambitious Ksh4.2 trillion ($30.6 billion) 2024-25 budget.