No more new developments “zoea mapema” National treasury to freeze new development projects


The national treasury is now proposing to freeze all the new development projects and those whose budget absorption closed at the first quarter having realized between  60-65% of the allocated amount as one of the measures  set to realizing the sh. 300B expenditure reduction promised by president william ruto.  
The kenya kwanza government supplementary budget is under preparation as the new gort seeks to make good its pledges to help the economy attain a path towards reduced expenditure.

Through the circular, dated Nov 7th, conveyed the accounting officer of all ministries ,departments and agencies. signed by both the cabinet secretary treasury, prof Njuguna Ndung’u, the government has administered a raft of measures including a 75% slash on plant spending.

“The government is committed in ensuring that there is value of money in the public expenses. And in this regard the principles of efficiency, effectiveness and economy of public spending would be strictly enforced by ensuring that low priority expenditures give way to high service delivery programs,”  Prof. Njuguna Ndung’u; CS-National Treasury

Further the treasury is suggesting that the ministries, departments and urgencies prioritise settlement of established  pending bills as one way to unlock liquidity in the market.
This comes just days after the Kenya kwanza government is delianating with the new cabinet secretary agreeing to amend the petroleum levi fund act to allow draw downs from the kitty to settle the arrears towards contractors.
The national assembly budget and appropriations committee chairperson, ndindi nyoro has indicated that the supplementary budget gives priority to expenditure rationalization.

The government will control all expenditures by initiating hostility measures on the provisions for the maintenance and operations on the budgets according to its priorities.
By Juliet Wekesa


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