President William Ruto on Friday, July 5, announced the immediate ban on the purchase of new motor vehicles for government employees.
Speaking at State House, Nairobi, Ruto announced that this was one of the austerity measures his administration was undertaking.
The austerity measures were necessitated by the retraction of Finance Bill 2024 that had aimed to raise over Ksh300 billion to finance the 2024/25 financial year budget.
"The purchase of new motor vehicles by the government is suspended for 12 months except for security agencies while a new policy on transport for public officers will be developed," Ruto announced.
"All non-essential travel by State and Public officers is hereby suspended."
The President revealed that Kenya would borrow Ksh170 billion and borrow the rest so as to cover the deficit from the Ksh346 billion lost after Kenyans asked the President to reject the Finance Bill in its entirety.
With Kenya strapped for cash, President Ruto announced that money raised would be used to fund critical services.
Instead of purchasing motor vehicles and other non-essential expenditures, Ruto's administration will prioritise hiring Junior Secondary School (JSS) and teachers and medical interns.
Other areas that will receive funding include; the milk stabilisation programme, reviving stalled road projects and retaining the fertiliser subsidy programme.
President Ruto further issued a reprieve to university students by noting that the Higher Education Loans Board (HELB) would not be affected by the cut in funding.
To ensure Kenya's debt does not spiral out of control, Ruto announced that 47 corporations with overlapping functions would be dissolved.
Ruto is expected to further engage Kenyans through X Spaces to listen to grievances made by the young generation concerning his administration.
