Prime Cabinet Secretary Musalia Mudavadi revealed Monday that the withdrawal of the Finance Bill for 2024 will lead to a deficit of Ksh 344 billion in the country’s revenue.
To address this fiscal gap, Mudavadi who is currently the acting CS for National Treasury noted that the government is going to implement significant budget cuts alongside targeted new measures.
According to Mudavadi, the National Treasury will reduce the development budget by Ksh 138 billion. Cuts include Ksh 8 billion from the National Government Constituencies Development Fund (NGCDF), Ksh 1 billion from Parliament, and Ksh 800 million from the Judiciary. Additionally, Ksh 14.6 billion will be slashed from infrastructure projects, Ksh 14.1 billion from road construction, Ksh 6 billion from water and sanitation, and further reductions across several sectors.
Despite these cuts, the Prime CS indicated that the government will boost funding in key areas, including Ksh 2 billion for coffee debt relief, Ksh 1 billion for sugarcane farmer reforms, Ksh 500 million for milk support, and Ksh 28 billion for pensions. Ksh 30 billion will be transferred to counties, and Ksh 13.5 billion will support the NGCDF.
During the session with MPs, Treasury Principal Secretary Dr. Chris Kiptoo took time to highlight economic progress registered so far, including a stable Kenyan Shilling and reduced inflation. He said measures put in place aim to manage the revenue shortfall while maintaining essential services.
