Ruto Orders 30% Salary and Budget Cuts for Select Govt Employees
On Tuesday, March 26, President William Ruto directed the Chief Executive Officers (CEOs) of Kenyan state corporations to cut their authorized budgets by 30 percent.
After a gathering at the State House, President Ruto emphasized the importance of exercising fiscal discipline in utilizing public funds. He highlighted the necessity for a thorough examination of the recurrent budgets of state-owned corporations to eradicate corruption and prevent the misappropriation of public resources.
President Ruto additionally urged the CEOs of state-owned enterprises to utilize technology to discover the most efficient methods of managing operations and increasing profits. He cautioned that expenditures should always remain within the confines of the established budget.
Recurrent budget means resources set aside for ongoing expenditures such as; salaries, operations, and maintenance cost of capital assets.
“The time is up for loss-making parastatals and those that make profits must stop wasteful expenditure, including financing largesse in their parent ministries and unnecessary procurement,” Ruto stated.
“Now that the economy has stabilized, we cannot continue accumulating debt. Borrowing will only lead us down the cliff.”
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In the briefing, the leader discussed the potential sale of certain institutions to private entities as a means to enhance productivity. He highlighted how various organizations are placing significant financial burdens on the national budget.
He mentioned instances where government-owned enterprises duplicated functions, resulting in the inefficient use of taxpayers’ funds.
However, Ruto pointed out that the private sector offered a significant opportunity to rejuvenate these companies in multiple industries.
“In three years, we must run a balanced budget. It won’t be easy but we must do it,” he explained.
In December 2024, Ruto revealed intentions to privatize 350 state-owned enterprises, emphasizing that this initiative would significantly enhance their effectiveness.
He observed that the private sector would be more effective in aiding these companies compared to the federal government.
“We are spending billions of shillings sustaining companies. We have 350 entities that just take money from the budget, we are supporting them. Some of them, nobody can tell you what they are doing,” Ruto stated during a conference at the KICC.
Ruto Orders 30% Salary and Budget Cuts for Select Govt Employees
