Kenyan President William Ruto has announced the dissolution of 47 state offices in a move to cut government spending after the withdrawal of the Finance Bill 2024 due to recent violent protests, which have spread across Kenya.
"The 47 state corporations with overlapping and duplicating functions will be dissolved, resulting in the elimination of their operation and maintenance costs, and their functions will be integrated into their respective ministries," Ruto said in a national address.
The president further stated that "the number of advisers in government shall be reduced by 50 percent within the public service, with immediate effect."
Moreover, he suspended international trips for officials for one year and banned "harambees," events where lawmakers give money to their constituents.
Ruto also stated that he has created a task force to audit the national debt, arguing that borrowing 346 billion Kenyan shillings ($2.69 billion) would prevent budget cuts to farmers' subsidies.
Furthermore, Ruto indicated that the budget allocations that allow for the activities of the offices of the First Lady, the spouse of the Deputy President, and the Principal Cabinet Secretary will be withdrawn.
Kenyans have been protesting suggested tax increases since June 18 and eventually set fire to parliament and municipal council buildings in the capital, Nairobi, on June 25. Kenya's National Human Rights Commission reported 39 deaths and 350 injuries since June 18; the Kenyan president stated that 19 people died as a result of violence.
The controversial Finance Bill 2024 that enraged Kenyans suggested raising transportation, food, and mobile communications value-added tax rates—International Monetary Fund-recommended measures.
The controversial Finance Bill 2024 that enraged Kenyans suggested raising transportation, food, and mobile communications value-added tax rates—International Monetary Fund-recommended measures.
The Kenyan president withdrew the bill following the outbreak of violence, warning that it would force the government to borrow up to 1 trillion Kenyan shillings (about $7.7 billion) outside. Kenya's national debt is 10 trillion shillings (approximately $77 billion), or over 70% of its GDP.