Ruto signs Supplementary Appropriations Bill, approving plan to cut expenditure by Ksh.145B

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.

Key highlights in the Bill include major reductions in recurrent and development expenditures.

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.

State House and the Deputy President got an expenditure reduction of Kshs.6 billion, Ksh.7 billion for the National Treasury, Ksh.6.9 billion for various development projects under medical services and Ksh.17.3 billion for road projects and transport sector projects.

Key beneficiaries are pension payments amounting to Kshs.23.8 billion, and the National Government Constituency Development Fund will get Kshs.13.5 billion. 

The Agriculture sector will get approximately Kshs.20 billion to support farmers in enhancing production and productivity.

Another Kshs.18.7 billion will be allocated for the promotion of Junior Secondary School interns into permanent and pensionable terms, Kshs.30.7 billion for capitation for JSS students including those transitioning to grade nine and Kshs.23 billion to universities for the Differentiated Unit Cost funding model.

Further, Kshs.31.3 billion will be sent to the Higher Education Loans Board (HELB) for scholarships and loans and Kshs.17 billion to the University Funding Board for scholarships to university students. 

To support the reforms in the healthcare sector and promote universal health coverage, the Bill has appropriated Kshs.3.7 billion for the medical internship program, Kshs. 4 billion for the primary healthcare fund, Kshs.4 billion for contracted UHC healthcare workers and Kshs.4.5 billion for Community Health Volunteers allowances and equipment.

Officers working in security organs will also benefit from an allocated Kshs.3.5 billion which will enhance their remuneration perks.