DOOM AND GLOOM

Gloom as elderly, orphans face budget cuts

"The government plans to slow down on social safety nets."

In Summary
  • The elderly, orphans and disabled are currently receiving Sh8,000 from the government after a four-month delay due to cash constraints.
  • The National Treasury has projected to further slash the department's allocation in subsequent two financial years, spelling doom for millions of vulnerable groups.
PS Joseph Motari addressing the elderly at a local bank outlet in Kajiado on Tuesday.
PS Joseph Motari addressing the elderly at a local bank outlet in Kajiado on Tuesday.
Image: KURGAT MARINDANY.

Vulnerable groups currently enjoying monthly stipends from the state face a bleak future with President William Ruto's administration proposing radical budget cuts.

The three groups are currently receiving Sh8,000 from the government after a four-month delay due to cash constraints.

According to the 2023-24 budget projection by ministries, the government will only release a third of the money being sought by the State Department for Labour and Social protection.

While the department had indicated it requires Sh107 billion in the next financial year, the National Treasury allocated it a mere Sh36.1 billion.

The National Treasury has projected to further slash the department's allocation in the subsequent two financial years, spelling doom for millions of vulnerable groups.

While the State Department indicated it would require Sh109.5 billion in the 2024-25 financial year, the Treasury has allocated it Sh35.2 billion.

Consequently, during the financial year, the department will suffer a sh74.3 billion budget deficit, getting just Sh32.1 per cent of its needs.

In the 2025-26 financial year-Ruto's third financial year in the office-the department will get less than 30 percent of its required budget.

Over the three years, the National Treasury projects will have to slash the department's budgets by Sh2.4 billion even as its requirements are projected to increase by Sh5 billion.

"The sector, therefore, will have to source for funds outside the budgetary allocations," said Principal Secretary Joseph Motari on Friday.

He said among the options the department is looking at to plug the budget deficits would be through donor funding and Public Private Partnerships.

The Social Development and Children Services programme had asked for Sh8.9 billion in 2023/24, but it has so far been allocated Sh4.7 billion.

The government plans to slash money meant for social safety nets despite it being one of the key pillars of poverty reduction efforts.

There have been reports that the Kenya Kwanza government is evaluating the impact of the safety nets with a view to drastically reducing its budgets.

WATCH: The latest videos from the Star