President William Ruto has signed the Supplementary Appropriations Bill into law which plans to reduce government's expenditure by Ksh.145.7 billion.
The Bill, which was considered and passed by the National Assembly on 31 July 2024, seeks to create a balance by reducing recurrent expenditure while safeguarding critical essential expenditure in the agriculture, health and education sectors among others.
This comes after the withdrawal of the Finance Bill 2024 which caused a revenue shortfall of approximately Kshs.344 billion, prompting the need to realign planned expenditures to the revised fiscal framework.
The Bill proposes reductions to recurrent and development expenditures for all arms of government, constitutional commissions and independent offices.
The total reduction for the National Government is Kshs.145 billion which consists of Kshs.40 billion for recurrent expenditure and Kshs.105 billion for development expenditure.
"Out of the total Kshs.145.7 billion reductions, the reductions for the Executive is Kshs.139 billion drawn from various Ministries," reads part of the Bill.
The Bill also proposes a reduction of Kshs.3.7 Billion for Parliament and Kshs.2.1 Billion for the Judiciary.
