Ruto, Gachagua Offices Get Ksh2B Boost as State Departments Face Cuts
The National Treasury’s budget plans for the 2024/2025 financial year indicate a major shift in spending priorities, with substantial increases for the Office of the President and Deputy President, while other key state departments face considerable funding reductions.
Unveiled on May 2, the Programme Based Budget 2024/25 proposes an extra Ksh1.35 billion for the President’s office and Ksh590 million for the Deputy President’s office compared to last year’s budget.
If approved, the President’s office will receive Ksh5.37 billion in funding, and the Deputy President’s office will receive Ksh4.88 billion, up from Ksh4.03 billion and Ksh4.29 billion respectively in the previous financial year.
These funding boosts coincide with efforts to cut budget allocations to key sectors such as education, health, roads, and agriculture.
The State House budget will drop to Ksh9.49 billion from Ksh9.84 billion, while Prime Cabinet Secretary Musalia Mudavadi’s budget will decrease to Ksh1.14 billion from Ksh1.19 billion in 2023/2024.
The Treasury announced a Ksh267.5 billion reduction in the 2024/25 budget, with state departments primarily facing the cuts.
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Total expenditure and net lending for the upcoming financial year are projected at Ksh3.92 trillion, down from an earlier estimate of Ksh4.188 trillion, with cuts affecting multiple sectors.
Operating expenses, including recurrent costs such as wages, salaries, interest payments, and pensions, are expected to drop by Ksh77.6 billion to Ksh2.781 trillion from the earlier Ksh2.859 trillion estimate.
Development spending will also experience a significant reduction, with estimates cut to Ksh687.9 billion from Ksh877.8 billion. The Treasury attributes these cuts to the sluggish performance of domestic revenues.
The Treasury stated that “due to the underperformance of revenues in the 2023/24 financial year, projected revenues in the approved 2024 budget policy statement have been revised to reflect the current reality. Additionally, to maintain fiscal responsibility, it is necessary to limit borrowing and manage expenditures to sustainable levels.”
Ruto, Gachagua Offices Get Ksh2B Boost as State Departments Face Cuts
