President Ruto Proposes Budget Cuts Following Deadly Protests
In response to deadly protests sparked by contentious tax hikes, Kenyan President William Ruto has announced sweeping budget cuts amounting to 177 billion shillings.
These measures aim to address a significant budget deficit left after the withdrawal of a controversial finance bill, which led to public uproar and violent demonstrations resulting in 39 fatalities.
President Ruto, addressing the nation from State House, Nairobi, outlined the necessity of these cuts amidst a mounting fiscal challenge.
“We will be proposing to the National Assembly a budget cut of 177 billion and borrowing the difference,” stated Ruto, acknowledging a shortfall that requires additional borrowing of approximately 169 billion shillings.
The protests, largely driven by youth, erupted into chaos as demonstrators clashed with police outside parliament, prompting the bill’s cancellation. The scrapped legislation aimed to implement tax hikes that sparked widespread discontent across Kenya.
The proposed budget adjustments include absorbing 47 state-owned entities into other departments, abolishing the offices of the First Lady and the Deputy President’s spouse, and halving the number of government advisors.
President Ruto also imposed a suspension on all non-essential travel by state and public officers as part of austerity measures.
Despite the fiscal strain, President Ruto emphasized the allocation of funds for critical services such as hiring secondary school teachers, supporting medical interns, and maintaining agricultural programs benefiting farmers.
The decision to borrow additional funds is expected to increase Kenya’s fiscal deficit from 3.3 percent to 4.6 percent of GDP. Public debt in Kenya currently stands at approximately 10 trillion shillings, representing about 70 percent of the country’s GDP.
The budget proposals will now be presented to Kenya’s National Assembly for consideration and approval.
