The state has mandated austerity measures across ministries, corporations, and state agencies. Felix Koskei, Chief of Staff and Head of the Public Service, signed a recent circular directing accounting officers to adhere strictly to new guidelines.
Effective immediately, the government has suspended the procurement of promotional materials and merchandise. This includes corporate wear such as t-shirts, shirts, tracksuits, and other branded clothing items. Additionally, purchases of promotional merchandise like calendars, diaries, umbrellas, power banks, and more are to be halted.
Koskei emphasized that these measures aim to reduce expenditures on non-essential items and address wastage within government operations. He urged all ministries, state departments, and state corporations to optimize their operations and rationalize non-priority expenditures.
These directives align with the Kenya Kwanza government’s commitment to redirect public resources toward priority areas supporting the Bottom-up Economic Transformation Agenda (Beta). This initiative aims to steer the nation toward economic revitalization within a macroeconomic framework focused on fiscal consolidation.
Koskei underscored the policy on fiscal consolidation, emphasizing enhanced revenue mobilization alongside austerity measures to rationalize non-priority expenditures while safeguarding essential social development spending.
The recent measures coincide with Parliament’s approval of the 2024 Budget Policy Statement (BPS), themed “Sustaining Bottom-Up Economic Transformation Agenda for Economic Recovery and Improved Livelihoods.”
National Treasury Cabinet Secretary Njuguna Ndung’u also issued directives to accounting officers, emphasizing reallocation of funds from non-priority expenditures.
He highlighted the need for a critical review of budget proposals for goods and services by Ministries, Departments, and Agencies (MDAs), with potential reallocations from less productive areas.
Furthermore, the Treasury announced stringent measures for profit-making state parastatals, indicating that they would need to sustain themselves financially starting from the next fiscal year.
Despite these measures, President Ruto’s administration faces criticism regarding luxury spending, as highlighted in reports by the Controller of Budget and Auditor General, which have documented instances of continued extravagance.
