Kenya: William Ruto announces a series of drastic measures

Kenyan President William Ruto has announced a series of tough measures, including cutting allocations to counties and curbing government spending, after refusing to sign the 2024 Finance Bill.

Kenya is going through a budgetary crisis following the rejection of the 2024 finance bill. In response, President William Samoei Ruto unveiled this Friday a set of measures intended to maintain the country’s financial stability in the face of challenges.

In the official statement, President Ruto announced that he had referred the County Allocation and Revenue Bill to Parliament. This referral aims to readjust the allocations according to the expected reduction in income after the rejection of the finance bill. As a result, local governments will face a reduction in their budgets, which could affect the delivery of many public services.

Furthermore, Ruto directed the National Treasury to immediately submit amendments to the Revenue Allocation Act 2024. These amendments should reflect the anticipated decline in revenue, which will impact the distribution of funds between the central government and the counties.

Among the strictest measures, the president has demanded that the National Treasury limit spending to critical and essential services only, capping it at 15% of the initial budget until a supplementary budget is approved. The move is intended to preserve available resources, but could lead to disruptions in the functioning of many public services.

The announcements come after President Ruto refused to sign the 2024 Finance Bill on Wednesday, June 26. In line with constitutional requirements, Ruto nevertheless signed the 2024 Appropriation Bill into law to ensure continuity of government operations. However, he imposed a drastic cut in expenditure, amounting to Ksh346 billion, split between the national government and county governments.