President William Ruto has assented to the Appropriations Bill 2024 and directed the National Treasury to promptly prepare supplementary estimates to reduce expenditure by the amount of revenue expected from the rejected Finance Bill 2024. This reduction in expenditure, amounting to Kshs 346 billion, will be borne equitably by both levels of government: the National and County Governments.
The budget cuts will impact the National Government, with the reduction spread across the executive, legislature, judiciary, and constitutional commissions.
Articles 221 and 222 of the Constitution mandate that the Appropriations Bill be signed by June 30 each year to ensure the continuity of government operations, especially in delivering critical services.
On Wednesday, June 26, 2024, President Ruto declined to sign the Finance Bill 2024, sending a memorandum to the National Assembly rejecting all clauses of the bill. Consequently, he referred the County Allocation and Revenue Bill, which was based on anticipated revenues from the rejected Finance Bill, back to Parliament for reduction.
Furthermore, President Ruto instructed the National Treasury to immediately submit amendments to the Division of Revenue Act 2024 to Parliament to reflect the reduced revenues caused by the rejection of the Finance Bill. He also directed the National Treasury to ensure all accounting officers fund only critical and essential services, using no more than 15% of the budget, until the supplementary budget is approved.
This move underscores the government’s commitment to fiscal responsibility and prudent management of public resources in light of the revised revenue expectations. The equitable distribution of the budget cuts aims to maintain a balanced approach to managing the country’s financial resources amidst the current economic challenges.
