Gov’t set for budget cuts as President Ruto signs Appropriations Bill 2024

President William Ruto has signed the Appropriations Bill, 2024 into law to allow for the continuity of government operations for the next financial year after Finance Bill, 2024 was withdrawn.

In a statement to newsrooms on Friday, the President said the Appropriations Bill would be critical to ensure the running of critical government services in accordance with the law before the Treasury prepares a supplementary budget.

The Head of State explained that the Treasury will now be required to prepare a supplementary estimate which would reduce government expenditure by the amount of revenue that was expected to be generated by the rejected Finance Bill, 2024.

“On Wednesday 26th June 2024, I declined to sign the Finance Bill 2024 consequently sending a memorandum to the National Assembly rejecting all clauses of the Bill…Articles 221 and 222 of the Constitution require that the Appropriations Bill be assented to by the 30th of June every year to guarantee the continuity of government operations, especially in providing critical services,” he stated.

“I have therefore assented to the Appropriations Bill 2024 and instructed the National Treasury to immediately prepare supplementary estimates to reduce expenditure by the amount of revenue that was expected to be generated by the rejected Finance Bill 2024.”

The President said the Finance Bill was expected to generate Ksh.346 billion, and the money will now be borne by all levels of government.

“With respect to the National Government, the reduction will be borne by the Executive, the Legislature, the Judiciary, and our constitutional commissions,” he noted.

President Ruto also referred the County Allocation and Revenue Bill, which was based on expected revenues from the rejected Finance Bill, back to Parliament for reduction accordingly.

He at the same time directed the National Treasury to immediately submit to Parliament amendments to the Division of Revenue Act 2024 to reflect on the reduced revenues occasioned by the rejected Finance Bill.

According to the President's directive, all accounting officers are expected to ensure that only critical and essential services are funded, using no more than 15% of the budget, until the supplement budget is approved.

Ruto verbally withdrew the contentious Bill on Wednesday, sparking debates on whether he had the constitutional powers to do so, given that Parliament went on recess earlier in the day and would resume regular sittings on Tuesday, July 23.

According to clause 6 of the Constitution, if the President refuses to sign a Bill and fails to return it to Parliament within 14 days, the Bill will be considered law, and as such, Ruto had to officially initiate the process by writing to Speaker Moses Wetangula.