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- National Treasury Cabinet Secretary Njuguna Ndung’u has urged the Kenyan Ministries to implement austerity measures, including the suspension of any new construction initiatives in the face of the deepening financial crisis faced by the nation.
National Treasury Cabinet Secretary Njuguna Ndung’u has urged the Kenyan Ministries to implement austerity measures, including the suspension of any new construction initiatives in the face of the deepening financial crisis faced by the nation. Speaking at the opening of the public sector hearings for the FY 2023/24 and the medium-term budget, he stated that as per the official analysis of the national and international trends, the year 2023 could be a tough year for Kenya.
Kenya’s cost of living has been worsening with inflation touching 9.1 per cent in December. The impact of the Russia-Ukraine war continues to batter the economy. The rising wage bill of over Sh900 billion he said has become a big drain on the National Treasury. The Treasury CS denounced the mismanagement of public funds by numerous government agencies and called for harsh austerity measures. The Treasury has directed all ministries to complete their current projects prior to beginning any new ones. He cautioned that idle projects waste valuable resources.
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The Treasury announced that to achieve fiscal consolidation, it proposes to abolish expenditures in certain recurrent areas. These include domestic and foreign travel, communication, printing, training, hospitality, fuel, purchase of furniture, purchase of motor vehicles, refurbishments, and routine maintenance.
