The National Treasury has ordered all State corporations, totalling 248, to submit a revised budget by Tuesday, April 2.
This followed an earlier directive by President William Ruto on Tuesday, March 26, that all government institutions must implement austerity measures.
As such, all Ministries, Departments and Agencies (MDAs) will cut their expenditure by 70 per cent according to the National Treasury.
“Every State Corporation should re-submit its 2024/2025 Financial Year (FY) recurrent expenditure budget which has been rationalized to a level that is not more than 70 per cent of the approved 2023/2024 FY budget,” a circular from the National Treasury read in part.
“All submitted 2024/2025 FY budgets by State Corporations have been reverted to respective Corporations for rationalization and should be re-submitted through Government Investments Management Information System (GIMIS) by April 2, 2024.”
Reduction of expenditure is geared towards ensuring the enhancement of revenues and expenditure control.
The Kenya Kwanza administration envisions that this will ensure that there is money available for the provision of critical services and implementation of priority projects.
“All MDAs should ensure prudent and responsible utilization of public resources as provided for in the Constitution and other relevant laws,” the circular read further.
One of the ways the state corporations will be able to achieve the 70 per cent budget estimates is by cancelling all planned new projects.
Going forward, any new project that needs to be implemented must be approved by the National Treasury.
Additionally, MDAs were instructed that all monies generated or received over and above the approved revenue budget should not be spent.
Other ways to cut expenditure include cancellation of individual or corporate club membership fees or annual subscriptions.
“Payment of subsistence allowance and reimbursement for use of personal cars can only be made to a Director who will be required to travel and spend a night away from his/her declared residence while attending a Board activity,” MDAs were directed further.
