Government to Cut Spending on Foreign Trips, President Kenyatta Says

President Uhuru Kenyatta has announced a reduction on expenditure in all arms of government including the Executive, Legislature and the Judiciary.

The President, who spoke on Friday at State House, said the austerity measures aim at addressing the huge financial gap facing the country.

“These cuts will target less essential spending like hospitality, training and seminars, foreign and domestic travel and other similar categories,” the President announced.

In an exposé, a local publication revealed that various government ministries were using up to 24 percent of their allocated budget on non-essentials such as gifts, local and foreign travel, meal allowances, flowers and tea.

In March, National Treasury Cabinet Secretary Henry Rotich said the country was facing a budget deficit of Sh587.7billion.

The President also proposed that the 16 percent Value Added Tax (VAT) imposed on fuel be reduced by half.

This came after a public outcry over the increased tax burden that was placed on Kenyan taxpayers when the levy was effected on September 1st.

“I have heard and understood your concerns, which is why I have proposed, as part of my memorandum, to cut VAT on petroleum products by 50 percent – from 16 percent to 8 percent.”

“Should Parliament accept this proposal, the price of super petrol will drop from Sh127 to about Sh118, and the price of diesel will drop from Sh115 to about Sh107. Just as business owners took the new VAT rate as an opportunity to increase the cost of goods and services, I expect them not to take advantage of weary citizens, and to lower their prices commensurately and without delay,” President Uhuru said.