President William Ruto has signed the Supplementary Appropriations Act into law, signaling intensified budget cuts as part of the government’s renewed austerity measures. The Act implements significant reductions across various sectors, including a Sh6 billion cut from the presidency budget, Sh6.9 billion from medical services, and Sh17.3 billion from roads and transport projects.
Additionally, the Act includes a reduction of Sh3.7 billion for Parliament and Sh2.1 billion for the Judiciary.
A brief forwarded to President Ruto by Parliament highlighted the delicate balance between implementing necessary austerity measures and protecting the livelihoods of the people and the economy.
In passing the Bill, the MPs struck a balance by reducing recurrent expenditure while safeguarding critical essential expenditure in the agriculture, health and education sectors among others.
The Sh3.9 trillion budget will now be managed under the current Finance Act, supplemented by both external and internal borrowing to address the budget deficit.
These measures follow President Ruto’s decision on June 26 to withdraw the Finance Bill 2024, underscoring the administration’s commitment to fiscal discipline and economic stability.