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Kenya Breaking News

Treasury CS orders 100% budget cut in 14 key areas across ministries and parastatals

Njuguna Ndung'u

Treasury CS Njuguna Ndung’u has directed ministries and parastatals to cut on their budget in twenty-four key areas in what appears to be a follow-up to the radical austerity measures President William Ruto announced Friday.

Of the twenty-four areas affected, 14 of them will have their budget scrapped completely for the financial year 2024/2025.

In a circular released on Friday, CS Ndung’u said the rationalisation cuts across all Ministries, Departments and Agencies (MDAs), the Judiciary, Parliament, Constitutional Commissions and Independent Offices.

“The revision is being undertaken in accordance with Article 223 of the Constitution and Section 44 of the Public Finance Management Act (PFMA), CAP 412A,” Ndungu’u said

The areas affected by 100 per cent budget cuts are membership fees, dues and subscriptions to professional and trade bodies, examination and invigilation fees, confidential expenditures, monitoring and evaluation expenses, other operating expenses- others, refurbishment of buildings and purchase of vehicles and other transport equipment.

Others are the purchase of office furniture and general equipment, purchase of household furniture and institutional equipment, purchase of office furniture and general equipment, purchase of generators, rehabilitation and renovation, research, feasibility studies, project preparation and design, housing loans to public servants and car loans for public servants.

“These measures will be undertaken in all MDAs, including Semi-Autonomous Government Agencies (SAGAs),” CS Ndung’u said.

Other budget cuts directed by Treasury are communication, supplies and services (20 per cent), domestic travel and subsistence and other transportation costs (50 per cent), foreign travel and subsistence, and other transportation costs (20 per cent), training expenses (20 per cent), hospitality supplies and services (50 per cent), contracted professional services (20 per cent), contracted technical services (20 per cent), temporary committee expenses (20 per cent), maintenance of buildings and stations – non-residential (50 per cent) and maintenance of buildings and stations- residential (50 per cent).

CS Ndungu’u asked accounting Officers to submit the revised estimates to the National Treasury by the close of business, Monday, July 8.

This, he said, is to enable prompt submission of the FY 2024/25 Supplementary Estimates No.1 to Parliament for approval.

” To ensure these timelines are achieved, the officers working on the budget are required to work beyond working hours including the weekends,” Ndung’u said.

“Accounting Officers are required to strictly adhere to the contents of this guideline and draw the attention of all officers working under them including Chief Executive Officers of Semi-Autonomous Government Agencies and Autonomous Government Agencies.”

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