President Ruto Announces New Austerity Measures in National Address

Kenya’s President William Ruto has unveiled a bold plan to cut the national budget by Sh177 billion in response to widespread protests against proposed tax increases.

This decision follows the withdrawal of the Finance Bill, 2024, which had aimed to raise Sh346 billion through new taxes. In his address today, President Ruto outlined a comprehensive strategy to realign the budget while preserving essential services. The government will present a proposal to the National Assembly for significant expenditure cuts with the remaining Sh169 billion to be raised through additional borrowing. Key budget lines, including funding for new teacher hires, medical interns, and agricultural subsidies, will be maintained. The administration also plans to prioritize the completion of stalled infrastructure projects and address pressing issues in the coffee and sugar industries.

As part of the cost-cutting measures, the government will dissolve 47 State corporations with overlapping mandates to streamline operations and improve efficiency. President Ruto has also announced an end to harambee activities by State officers and the removal of confidential budgets across all government offices, including his own. These budget cuts represent a rare instance of the administration yielding to public pressure, particularly in light of recent youth protests against what were perceived as punitive tax measures in the Finance Bill, 2024. The President’s decision demonstrates a willingness to respond to public sentiment and adapt policies accordingly.

To formalize these changes, Attorney General Justin Muturi will draft legislation banning State officers from participating in harambee activities and addressing philanthropic endeavors. The government will also cease funding for the offices of the First Lady, Deputy President’s spouse, and Prime Cabinet Secretary. Additionally, the filling of Chief Administrative Secretary positions, which had been previously blocked by courts, will now be halted following Parliament’s recent legislation allowing their appointments.

Further cost-cutting initiatives include a one-year suspension of motor vehicle purchases for most government agencies and departments, a halt to non-essential travel for officers, and a 50% reduction in the budget for government building renovations. The administration also plans to reduce the number of government advisors, a move expected to save Sh1.1 billion. President Ruto’s decisive actions aim to stabilize Kenya’s finances while addressing pressing national needs.

The president has also expressed sympathy for the families who have lost loved ones and extends his concern to those recovering from injuries sustained during the unrest. He has assured the public that the government would provide assistance to the families of the deceased and to those who had been wounded in the chaos. President Ruto acknowledges that the protests have catalyzed meaningful and serious discussions within the country about addressing pressing public concerns. This recognition comes on the heels of an emergency Cabinet meeting convened by Ruto to address the widespread protests against the controversial Finance Bill.

Kenya National Human Rights Commission reports that the nationwide demonstrations resulted in at least 39 fatalities and left 361 individuals injured.