Ruto Signs Appropriation Bill Into Law Cutting Gov’t Expenditure

President William Ruto has signed Supplementary Appropriation Bill into law, introducing several budget cuts across ministries and state departments.

The Supplementary Appropriation Bill No. 2 of 2024 majorly focuses on expenditure cuts due to fiscal pressures facing the government.

The bill introduces a comprehensive reduction in government spending while re-allocating funds to important sectors like agriculture, health, education and security.

The major focus of the expenditure cut is mainly on Total Spending Reduction which amounts to Sh145.7 billion. Recurrent Expenditure Cut by KSh40 billion and Development Expenditure Cut by Sh105 billion.

The government Institution affected by the cut include the Executive with the largest cut of Sh139.81 billion being reduced across various ministries and state departments.

The Parliament facing Sh3.7 billion reductions and the Judiciary with Sh2.1 billion reductions.

The presidency

The ministries and various sectors have also been affected by the bill. It includes State House and Deputy President’s Office with Sh6 billion cut. National Treasury with KSh7 billion cut. Ministry of Health with Sh6.9 billion reductions, and finally the Roads and Transport Sector getting Sh17.3 billion reductions.

All these cuts are primarily meant to support crucial sectors in the country including Agricultural sector with Sh20 billion allocated to support farmers by boosting fertilizers subsidies, waiving farmer’s debt, and enhance production and productivity.

Health sector with Sh16.2 billion allocated for health sector reforms and development, including Sh3.7 billion for a medical internship program, Sh4 billion for the Primary Healthcare Fund, Sh4.5 billion for community health volunteers’ allowances and equipment. Sh4 billion for the Universal Health Coverage (UHC) program.

Education and Security sectors

Education sector with Sh120.7 billion allocated for education reforms, including: Sh18.7 billion for promoting Junior Secondary School (JSS) teachers to permanent terms, Sh31.3 billion to the Higher Education Loans Board (HELB) for scholarships and loans to university students, Sh17 billion for the University Funding Board, supporting university scholarships.

Security sector with Sh3.5 billion allocated for salary increases for security officers as part of the National Taskforce on Police Reforms recommendations and improving conditions of the police officers.

Pensions payments have been allocated Sh23.8 billion while Sh13.5 billion has been allocated to National Government Constituency Development Fund (NG-CDF) to support local development initiatives.