This archive report was first published on 26 September 2019.
On September 26, 2019, the National Treasury announced fresh austerity measures aimed at cutting public spending. The measures include freezing bench-marking trips by ministries and their respective State departments.
According to a circular issued by Acting Treasury CS Ukur Yatani, the government has capped the number of officers in government delegations for foreign travel to a maximum of four. Additionally, all bench-marking and study tours have been suspended until further notice.
Yatani has also implemented measures to reduce miscellaneous expenditure, including cutting the budget for newspapers by three quarters and reducing airtime spend by 30 percent. The government is encouraging the use of internet calls and other cheaper alternatives.
The Treasury has also capped the acquisition of new spaces by ministries and trimmed the value on new furniture purchases by 75 percent over the next three years.
These measures are expected to be duplicated by counties, and the government aims to enhance prudent financial management by living within its means.
Yatani's initial squeeze on ministries' excessive spends has garnered the backing of the Central Bank of Kenya (CBK), which expects fiscal consolidation to lead to the freeing up of monetary policy to better anchor economic output.
