National Treasury Cabinet Secretary Prof. Njuguna Ndung’u has written to the National Assembly proposing far-reaching budget cuts on 2024/25 estimates.

In a letter to the Clerk of the National Assembly, Ndung’u said the proposals to drop certain provisions in the Finance Bill 2024 could occasion a Ksh200 billion budget hole.

The Treasury has proposed a Ksh8.3 billion cut to the State Department of Higher Education and Research.

This will see the Higher Education Loans Board (HELB) lose Ksh3.2 billion, the Differentiated Unit Cost reduced by Ksh2.1 billion, and the Infrastructure Projects slashed by Ksh3 billion.

Additionally, the allocation to the State Department for Technical Vocational Education and Training (TVETs) has been reduced by Ksh800 million.

“The National Treasury is working on additional measures to be submitted to the National Assembly by the end of Friday, 21st June 2024, to cater for the balance of Ksh21.6 billion,” Ndung’u said.

Basic Education

Ndung’u has proposed a Ksh3.4 billion reduction to the State Department for Basic Education.

This includes Ksh1.6 billion for infrastructure for primary and secondary schools and a Ksh1.8 billion reduction from the school feeding programme.

Treasury Proposal on TSC Budget 

The Teachers Service Commission (TSC) is one of the biggest losers, with a proposed Ksh18.9 billion reduction.

According to the CS, this will defer the confirmation of intern teachers to permanent and pensionable status, and the hiring of Junior Secondary School (JSS) teachers.

Medical Interns

Additionally, the CS has proposed a Ksh4.7 billion reduction in the initial allocation to the State Department for Medical Services.

Ndung’u reduced the money meant for servicing medical interns by Ksh3.7 billion, while the allocation to the Managed Equipment Services (MES) was cut by Ksh1 billion.

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State House & Other Key Dockets

On the other hand, the Executive Office of the President will lose Ksh451 million, while State House will lose Ksh500 million in operations and maintenance.

The CS has proposed deductions in other key departments as follows: State Department for Internal Security (Ksh2 billion), State Department for ASALs, Regional and Northern Corridor Development (Ksh4.6 billion), Ministry of Defence (Ksh7.75 billion), and State Department for Foreign Affairs (Ksh1.85 billion).

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Also, Ndung’u has suggested a Ksh12.7 billion deduction in his Treasury docket, slashed Parliament’s budget by Ksh3.1 billion, and reduced Judiciary’s funds by Ksh2 billion. Further, the County Equitable Share has been reduced by Ksh5 billion, while the National Police Commission will lose Ksh21.2 million.

Other notable losers include the State Department for Energy (Ksh21.7 billion), State Department for Roads (Ksh15 billion), State Department for Agriculture (Ksh6.7 billion), State Department for Social Protection and Senior Citizen Affairs, and State Department for Housing and Urban Development (Ksh2.1 billion).

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