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Kenya cuts costs and launches alternative to finance

Ruto's moves to avoid default and calm the square

06-08-2024 by Freddie del Curatolo

The Kenyan government cuts public spending on ministries, parliament and the judiciary, but seeks to safeguard key spending, especially on agriculture, health and education. This, in a nutshell, is President William Ruto's programme, following the signing of the 'additional appropriations' bill for the 2025 fiscal year, which has already passed parliament.
This is basically the replacement for the disputed budget that Ruto decided not to sign, last June, after violent street protests culminated in the storming of parliament itself. The protests, which were initially peaceful, went on to demand the resignation of the government and, with the sad toll of over 50 dead and hundreds injured and arrested, led to a reshuffle with a 'broad agreement' government in which four opposition ministers were also included.
Now it is a matter of putting a country on the brink of default back on its feet economically, while young people are preparing a big national demonstration for next Thursday, 8 August.
Meanwhile, compared to the 2.5 billion or so that Ruto proposed to recover by taxing citizens and businesses, the government has decided to cut about 1 billion, mainly draining the coffers of the political establishment, starting with the ministries (including Vice-President Rigathi Gachagua's office) and parliament. As for the judges, the cuts are slight, but their independence is still a guarantee of freedom and democracy in this country, even if sentences do not always arrive on time and are not always respected.
A large part of the allocated funds, which will have to be repaid by tax collection but also thanks to new loans coming from the World Bank in October, will be invested to confirm high school teachers and to support public schools, according to the president. In addition, allocations have been made to finance health sector reforms and promote universal health coverage. Salary increases for security force officers have also been considered. It will be seen whether this manoeuvre will soften the anger of the 'Z generation', which on social media continues to call on Ruto to 'go home' and totally change his ways, especially with regard to corruption. In this sense, the appointment of many familiar faces in the new government has not satisfied those who are protesting at all and are ready to take to the streets on 8 August for the national demonstration already dubbed 'NaneNane' (8-8).
 

TAGS: Rutoleggeeconomiafinanziaria

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