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Uhuru tries to tame lavish spending in cash crunch

President seeking to save billions expended on unwarranted expenditure

In Summary
  • A report by the Controller of Budget for the last financial year exposed that ministries, including thepresidency, spent more billions on foreign trips compared with the previous years.
  • The government has limited to four the number of people accompanying a Cabinet Secretary on a foreign trip, including the CS.

 

President Uhuru Kenyatta
President Uhuru Kenyatta
Image: PSCU

President Uhuru Kenyatta has moved to curb lavish spending in his administration with cuts that will be "brutal and sustained". 

This move comes amid concerns that previous austerity measures collapsed while the government continues to spend billions on non-essentials.

In a  circular on behalf of the Cabinet, acting Treasury Cabinet Secretary Ukur Yatani cut foreign travel and office operations in at least nine areas.

He said the cuts reflect the need to secure funding for the Big Four,  emerging spending pressures, revenue underperformance and the swelling public debt.

“This will ensure the government operates within its financial means and maintains its macroeconomic stability,” the CS said.

Benchmarking and study tours, seen as the new cash cow in government, was suspended indefinitely in the new measures that Yattani said “would be brutal and sustained”.

The government has limited to a maximum of four a delegation of a Cabinet Secretary on a foreign trip, the CS included.

A delegation of a Principal Secretary or chief executive of a parastatal will be limited to three.

“Accounting officers should ensure that international meetings, workshops, seminars and study tours are justified in terms of benefits to the people of Kenya,” Yatani said in the circular dated Wednesday.

Accounting officers have been limited to economy class for domestic travel.

Most state officers fly business class.

Yatani has advised top government officials to adopt technology, including teleconferencing to transact business and make use of Kenya’s foreign missions abroad as the country’s representatives

In what was almost becoming a broken record,  Uhuru has since 2017 pushed state officers to institute measures to save billions of shillings but the spending spree continues unabated.

A report by the Controller of Budget for the last financial year revealed that ministries, including the presidency, spent more billions on foreign and local trips than in the past.

The dossier showed that Uhuru and Deputy President William Ruto’s offices spent Sh196 million on foreign trips. Hospitality expenses reached Sh2 billion.

Foreign Affairs spent Sh2 billion on foreign travels and Sh786 million on hospitality.

Parliament spent Sh1.6 billion on foreign trips and Sh3.2 billion for local trips.

In August, MPs and MCA came under fire for sending a delegation of 85, the biggest at the event, to the National Conference of State Legislatures in Nashville, Tennessee.

According to the new directive, all trainings, except for highly specialised courses, will be conducted within the country and in particular at the Kenya School of Government and other government training institutions.

Treasury has also cut back on providing newspapers to staff.

Yatani said that newspapers given to all cadres should be rationalised to restrict spending to a quarter of the current budget.

Accounting officers have been directed to cut costs on airtime by 30 per cent and use internet calls and other cheaper options to save cash.

State departments have also been barred from running advertisement supplements to publicise strategic plans, service charters, and events.

Yatani instead directed that these documents be posted on ministry websites

More trouble is in store for government drivers who risk of being surcharged if they operate a government vehicle outside official working hours.

The Government Vehicle Check Unit has been directed to impound vehicles being used outside official working hours without the necessary authority.

Yatani said government vehicles are being used by some rogue officers for personal errands.

 No officer should use government vehicles outside the official working hours unless authorized by an accounting officer in writing,” the CS directed.

He went on: “It's reiterated that any officer receiving a commuter allowance and continuing to use government transport outside official working hours is liable for surcharge.”

These officers will be required to forfeit the equivalent of a months’ commuter allowance.

In addition, accounting officers have been directed to restrict the use of civilian number plates on GoK vehicles to check on abuse.

Expenditure on office furniture has also been ordered reduced by 75 per cent for the next three years. It must be manufactured in Kenya.

The Housing department will develop standards for office space for public officers and rent payable in zoned locations.

Further, government agencies have been directed to utilise available space in government buildings before venturing into the market for office facilities.

It is estimated that nearly 61 per cent of total Kenyan tax goes to debt repayment, putting the country in a tight financial position.

The directive, Yatani said, applies to all the three arms of government — the Executive, the Judiciary and Parliament, including all independent offices and commissions.

He asked counties to issue similar circulars to communicate the new policy measures and slash spending..

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