Nairobi Kenya- The President of Kenya, William Ruto has announced a KES 177 billion budget reduction to close the budget gap created by the withdrawal of the finance bill. This comes after protests forced the cancellation of disputed tax hikes that resulted in the deaths of 39 people.
The protests, mostly spearheaded by young Kenyans, expressed popular dissatisfaction with the yearly finance bill. President Ruto had to suspend the bill after warning of a massive funding deficit
President Luto’s recent announcement of proposed budget cuts has sparked intense debate across the nation. Advocates argue that these cuts are necessary to streamline government spending and ensure fiscal responsibility, while critics voice concerns about potential impacts on essential services and vulnerable populations.
The centerpiece of President Luto’s budget plan is a significant reduction in funding for several key sectors, including healthcare, education, and social welfare programs. Proponents of these cuts argue that they will promote efficiency and accountability within these sectors, citing the need to address long-standing fiscal deficits and debt burdens.
Ruto in his statement on Friday the 5th of July said “We will be proposing to the National Assembly a budget cut of not the entire KES 346 billion, but a budget cut of 177 billion and borrowing the difference (around 169 billion shillings). He also announced several belt-tightening measures including the absorption of 47 state-run organisations and companies with other departments.
