Budget Cuts Target CS Kuria, Linturi Ministries
Monday, the Kenya Conference on Debt and Development (KCDD) identified ministries that need budget cuts to rein in Kenya’s spending, which has contributed to a soaring national debt.
Kenya’s debt has increased from Ksh8 trillion in March 2022 to Ksh9.6 trillion in May 2023, according to the Central Bank of Kenya.
As Kenya seeks a long-term debt reduction strategy, the KCDD has decided to implement budget cuts to ministries with devolved functions for short-term respite.
“The budget deficit will be reduced by reducing budget expenditures in all areas of other expenditure and areas with overlapping devolved functions,” the resolution stated.
If the Parliamentary Budget Office (PBO), which was present at the meeting, submits the resolution to parliament for approval, Moses Kuria’s Ministry of Trade and Mithika Linturi’s Ministry of Agriculture will be among the most affected.
Health and Education are two additional departments that have been subject to massive budget decreases. The Investments, Trade, and Industry docket of Moses Kuria works closely with county governments in critical areas of trade and development.
This includes trade development and regulation, such as markets, trade licenses (excluding the regulation of professions), and ethical business practices.
In the event of budget cuts, the CS’s collaboration with various governors to establish County Aggregation and Industrial Parks (CAIP) will be impacted.
The Trade Secretary informed the nation on June 7 that the 47 governors of Kenya will play a central role in the delivery and administration of the Affordable Housing Programme.
A significant portion of the Ksh49.9 billion allocated to the Agriculture Ministry was used to subsidize fertilizers in the counties.
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The adjustments will have an impact on President William Ruto’s initiative to achieve food security. Crop and animal husbandry, livestock sale yards, county abattoirs (slaughterhouses), plant and animal disease control, and fisheries are delegated functions of Linturi’s ministry.
The Treasury allocated Ksh141 billion for the Ministry of Health, which is also designated for budget adjustments.
The majority of Health responsibilities, such as ambulance services, promotion of primary health care, licensing, and regulation of businesses that sell food to the public, and veterinary services, are reserved for county governments.
The resolutions of the conference reflect the sentiments expressed by Raila Odinga on Thursday, August 17, when he urged the National Government to devolve functions by the Kenyan Constitution.
“Today, fertilizers are acquired and distributed by the National Government, affordable housing is being conceptualized and implemented by the National Government, and the National Government wants to build markets and employ community health workers; all of these are devolved functions for which the counties should receive funding,” he bemoaned.
Raila made his statement one day after President William Ruto pledged to delegate all devolved functions to the counties.
“An analysis of the funding that will accompany the transfer of these functions is currently being conducted,” he added, noting that the exercise would be completed within 60 days.
During the KCCD, the National Assembly Public Debt and Privatisation Committee agreed to engage public members in simplified language regarding the actual status of public debt and to develop the capacity to participate in responding to the impending debt crisis.
Budget Cuts Target CS Kuria, Linturi Ministries
