President William Ruto has announced the dissolution of 47 state corporations with duplicated roles to allow for resources for other urgent matters.
Further, he has announced that staff employed by the affected corporations will be transferred to other ministries.
According to Ruto, the money from the budget cuts will go towards the hiring of Junior Secondary School (JSS) teachers and medical interns, reviving stalled road projects and retaining fertilizer subsidy program.
Other sectors include funding for higher education new funding model, settling debt owed to farmers in coffee sector, settling arrears owed to counties and settling arrears for pensions.
“I am very happy that we are having a conversation about jobs for our young people, about debt, about opportunities,” he said while making the announcement.
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Ruto on Retirement Age and Ban of Harambees
At the same time, the president has scrapped off the extensions of tenure for retired public servants.
Additionally, he has suspended the purchase of new motor vehicles by the government for 12 months with exceptions to security agencies.
Consequently, Ruto will be establishing a new policy on transport for public officers. Also, he has suspended all non-essential travel.
Furthermore, state officials and public officers have been banned from making any contributions during harambees.
“Henceforth, public servants who attain the retirement age of 60, shall be required to immediately proceed on retirement with no extensions to their tenure of service whatsoever,
“All non-essential travel by state and public officer is here by suspended. no state officer of public servant shall participate in public contributions or harambees going forward.”
“The attorney general is here by directed to prepare and submit legislation to this effect and develop a mechanism for contributions for charity, and philanthropic purposes.
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Taskforce Appointed for Debt Audit
Also, a taskforce has been appointed to conduct an audit on Kenya’s debt and propose sustainable solutions to the government.
“I have today appointed an independent taskforce to carry out a comprehensive forensic audit over public debt and report to us over the next three months.
“This audit will provide the people of Kenya with clarity on the extent and nature of our debt, how public resources have been expended, and recommend proposals for managing public debt in a manner that is sustainable and does not burden future generations,” said Ruto.
Additionally, the head of state announced that he will be presenting to Parliament a proposal to cut down the budget by Ksh177 billion and borrow the difference from Ksh346 billion.
Earlier, The Standard reported that about seven ministries would be scrapped and several departments in the government merged while other State corporations are disbanded.
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