As the effects of the Russia-Ukraine war continue to take a toll on Kenya’s economy, the country’s National Treasury Cabinet Secretary, Njuguna Ndung’u, has advised citizens to brace themselves for difficult times ahead.
Kenya’s cost of living has reportedly experienced a significant increase, with inflation reaching 9.1% in December. In response to this economic crisis, the National Treasury Cabinet Secretary (CS) has advocated for the implementation of austerity measures to alleviate the burden on citizens.
During the opening of the public sector hearings for the FY 2023/24 and the medium-term budget, Ndung’u demanded the immediate suspension of new construction initiatives to reduce the government’s expenditure and ensure that the country has the necessary resources to weather the crisis.
Ndung’u stated, “From all the things we have analyzed, 2023 is not looking good; there are clear signals that it is going to be a tough year and that the global economy is one example in terms of where we are going,” Capital FM reported.
Ndung’u also called for a reduction in the cost of the wage bill at both the national and county levels, saying that the over Sh900 billion rising wage bill continues to be a big obstacle for the budget-making office of Parliament and the National Treasury. National Assembly Budget and Appropriations Committee Chairman Ndindi Nyoro called on the Treasury to develop a balanced budget in the FY 2023/24 and do away with supplementary budgets, which he said are developed because of errors in the budget that can be avoided.
In addition to these measures, the Treasury CS also urged all government agencies to improve their management of public funds. “This is an important move, as it will help to ensure that the country’s resources are used in the most efficient and effective manner,” he noted.
Finally, the Treasury CS has mandated that all ministries must finish their current projects before beginning any new ones. Treasury Principal Secretary Chris Kiptoo stated that “We do not want you to start new projects before you complete existing ones, and even where there is an opportunity to restart the idle ones, let us focus on those because that amounts to a waste of resources if we have idle projects not completed.”
