President William Ruto has said parastatals that make profits must stop wasteful expenditure, including financing largesse in their parent ministries and un-necessary procurement.
Speaking During a meeting with chairpersons and CEOs of State corporations at the State House Nairobi ,president , Ruto underscored the importance of ensuring that government entities operate within their means and do not exceed their revenue.
President Ruto said some agencies have been making losses for years and have become a drain on the exchequer.
“Now that the economy has stabilised, we cannot continue accumulating debt. Borrowing will only lead us down the cliff,” he said.
“The money some parastatals make does not belong to their boards or management. It belongs to the people of Kenya as returns on investment.”
President William Ruto expressed regret over the widespread abuse of public resources, noting that it has hindered effective service delivery.
Ruto directed that moving forward, all government budgets and expenditures would undergo thorough scrutiny to ensure accountability and transparency.
“It is illogical. We have to shut down some of these loss-making parastatals. We must end excess capacity,” he said.
Consequently, Ruto said Kenya must begin living within its means and stop the habit of running huge budget deficits.