2019/2020 Budget: Treasury CS Henry Rotich Announces Radical Austerity Measures
Treasury Cabinet Secretary Henry Rotich has announced a raft of austerity measures aimed at reducing government expenditure in the next financial year.
Rotich outlined the cost-cutting measures when he read the 2019/2020 budget statement in Parliament on Thursday afternoon.
CS Rotich said all ministries, State agencies and corporations are required to procure cars locally effective July 1st, 2019,
“With effect from July 1st, 2019 all ministries, departments, agencies, and public entities are required to give exclusive preference in procurement of motor vehicles and motorcycles from firms that have assembly plants in Kenya,” Rotich said.
He said the move aims at promoting local manufacturing and creating employment opportunities.
To cut government's spending on domestic and international travel by State officers, Rotich said an electronic card system will be introduced.
"This card would be preloaded with sufficient allowance to be expended by officers traveling on eligible expenditures only," Rotich said.
He also said the government is considering introducing a new transport policy to include the use of fuel cards.
CS Rotich also announced that the government will standardize the procurement of all office accommodation to achieve a uniform cost of leases.
“The government has been leasing office space at higher than market rates. All existing contracts will be renegotiated to ensure a standard rate,” he noted.
To cut the ballooning wage bill, Rotich said the government will restrict the recruitment of new public servants in the coming financial year to key technical staff, security personnel and health workers.
“We will continue to take bold actions to contain our expenditures further in the next financial in order to reduce the deficit,” said Rotich.
He further noted that the government will adopt a policy of no new projects to ensure existing projects are complete.
In the Sh3.02 trillion 2019/2020 budget, the Treasury plans to cover the deficit of Sh607 billion through internal and external borrowing.
Comments
Mambo ya mabwawa (dams) na…
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Mambo ya mabwawa (dams) na huyu ndugu yetu Rotich yamefika wapi sasa? Inasemekana huyu ndugu yetu hawezi kueleza jinsi shilingi bilioni 21 zilipokwenda?
Ningependa kujua, Je, vita ya kupigana na ufisadi ni ya kweli au ni sarakasi tu?
With or without Austerity,…
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In reply to Mambo ya mabwawa (dams) na… by Imara Daima (not verified)
With or without Austerity, the UhuRutos are going to Loot the country. At the end they Ail and Die prematurely due to their Ill-gotten Vanity. Like Biwott and the rest.
If this government wants to…
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If this government wants to seriously implement austerity measures, it should implement the recommendations from the salaries and remuneration commission to tame the gluttonous scramble for public money by members of parliament and senators. They keep raising their salaries and allowances every year and when warned by SRC, they retaliate foolishly by threatening to lower salaries of SRC members to 12K per year. Heck they don't even want to pay tax! The so called referendum also need to remove all the duplication of positions put in place by the current constitution. There's no need of having 47 governors, 47 Deputy governors, 47 County Commissioners, 47 Deputy Commissioners, MCAs, 47 County Speakers, their deputies etcs. If we must have MPs, then we need to have the number of MPs like during Kenyatta era and 8 Provinces. This notion of borrowing to pay for salaries is as dumb as it gets. The government also need to stop wasting public money by paying ghost workers, ghost projects, stalled projects, and unnecessary ideas like new license plates, new IDs, near huduma nambers etc...We are not a rich country so don't act like we are a first world nation. And above all, prosecute corrupt official and confiscate the loots.
what about end corruption
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what about end corruption
Until Kenyans stop being…
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Until Kenyans stop being doormats and demand accountability, thievery will continue. They have incredibly bloated and overpaid bureacracies that are barely functional at best. California has the world's 5th largest economy yet the governor makes $202,000. You don't hear of local officials on useless trips overseas yet Kenyan officials are constantly on these junkets with no positive results. Kenyans stay mute about these abuses. Amkeni watu wa Kenya. Recall officials who don't work for you.
Kwa kawaida nadhani majaji wanapaswa kuwa na bodi ya mapitio ya kiraia ya kujitegemea na si mfumo wa sasa usio na ufanisi.
The current commission is clearly tilted in favor of judges and I don't see it taking adverse action on corrupt judges, ever.
Ndugu yangu @Mundumugo:…
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Ndugu yangu @Mundumugo:
Umenguruma (roar) kwa kusema ukweli kabisa. Ni lazima watu wa Kenya waamke.
Juzi wanabunge walijilipa marupurupu ya kodi ya nyumba (housing allowance) na huku wanapata mishahara mikubwa sana.
Maisha ya raia wa kawaida Kenya ni magumu sana. Kwa nini wahudumu (servants of the people) tuliowachagua wanafikiri ya kwamba pesa za Kenya ni pesa zao?
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