Kenyan President William Ruto has proposed a Sh177 billion budget cut and Sh169 billion borrowing to address the budget shortfall following the withdrawal of the Finance Bill, 2024.
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The proposal comes after recent protests against tax hikes resulted in 39 deaths, leading to the cancellation of the bill.
Ruto announced that the budget cuts will be used to fund critical government services, including hiring medical interns and secondary school teachers, milk stabilisation and fertiliser programmes, and road infrastructure projects.
The borrowing will increase the fiscal deficit from 3.3% to 4.6%.
Other austerity measures include the dissolution of 47 state corporations, the removal of budgets for the offices of the First Lady and the Deputy President’s spouse, and a 50% reduction in government advisors ¹ ². Non-essential travel and public contributions by state and public officers have also been suspended.
Ruto stated, “We have since struck a middle ground and will be proposing to the National Assembly a budget cut of Sh177 billion and borrow the difference…These measures are part of our commitment to enhance efficiency and transparency in serving the people of Kenya. “
