State House Seeks Sh1.7 Billion Reinstatement, Including Sh591 Million to Pay First Lady’s Staff Despite Office Closure
State House is seeking the reinstatement of Sh1.7 billion from the Sh5 billion budget cut it experienced, aimed at paying the staff of the disbanded office of First Lady Rachael Ruto.
The State House Comptroller Katoo Ole Metito urged MPs on Thursday to reinstate at least Sh1.7 billion, which includes Sh591 million designated for paying the staff of the First Lady’s office.
Despite President William Ruto disbanding the office as part of austerity measures following the rejection of the Finance Bill, 2024, Ole Metito emphasized to MPs that the staff have ongoing contracts that must be honored.
Appearing before the committee on administration and internal security regarding supplementary budget estimates, Ole Metito explained that some staff have three to five-year contracts and must be compensated even if the office is disbanded.
Ole Metito stated, “Terminating their contracts abruptly would lead to legal consequences.”
He was responding to Saku MP Dido Raso, who inquired about the fate of the employees in the First Lady’s office.
Raso expressed concern, asking, “Although the office of the First Lady has been abolished since it isn’t a constitutional office, what happens to the employees who are innocent and should not be punished?”
Ole Metito informed lawmakers that even if the staff were to be dismissed, they would still need to be paid at least two months’ salary by labor laws.
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State House has suffered the most from the budget cuts, Ole Metito noted, urging the committee to reconsider some cuts to maintain the operations of the President’s office.
The First Lady’s office had a budget allocation of Sh696 million, a 17.3% increase from last year’s Sh593.9 million.
In the mini-budget presented to Parliament, the National Treasury eliminated the budgets for the offices of the First Lady and Second Lady Dorcas Gachagua, saving taxpayers Sh1.25 billion this financial year.
Ole Metito is seeking reinstatement of several budget lines, including Sh591.9 million for employee compensation, Sh37.9 million for communication, supplies, and services at State House, and Sh389.9 million for domestic travel and transportation costs.
Additional funds Ole Metito wants reinstated include Sh114.6 million for foreign travel, Sh25.6 million, Sh43.9 million for rentals, and Sh532.1 million for hospitality supplies and services.
Ole Metito appealed, “I urge this committee to reconsider reinstating Sh1,736,305,955 under recurrent vote, which is critical for operations and employee compensation.”
He highlighted the importance of hospitality funds, noting that President Ruto continues to host other presidents and guests at the State House, making the budget line essential for operations.
Ole Metito acknowledged the need for budget reductions but stressed the importance of doing so reasonably to avoid closing the office.
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In the revised budget, funds for the refurbishment of State Houses in Nairobi, Mombasa, and Nakuru, as well as other State Lodges, have been shelved.
Initially, State House sought Sh1.5 billion for refurbishments in the 2024/2025 financial year, increasing to Sh1.8 billion in 2025/2026 and Sh1.5 billion in 2026/2027.
The initial budget earmarked Sh250 million for Nairobi State House, Sh240 million for Mombasa State House, and Sh200 million for Nakuru State House refurbishments.
State House also requested Sh270 million for refurbishing the fence and main house at Mombasa State House and Sh200 million for Nakuru State House.
Other refurbishments included Sh125 million for Eldoret State Lodge, Sh35 million for Sagana State Lodge, Sh14.9 million for Kisumu State Lodge, and Sh15 million for Kakamega State Lodge.
Kisii State Lodge refurbishment was allocated Sh19 million, and Mtito Andei was allocated Sh5 million.
The allocations for refurbishments sparked public outcry as Kenyans struggled with the high cost of living while funds were directed to what many deemed unnecessary areas.
However, in the revised budget, there is no allocation for refurbishing State Houses and lodges.
State House Seeks Sh1.7 Billion Reinstatement, Including Sh591 Million to Pay First Lady’s Staff Despite Office Closure
