This archive report was first published on 17 October 2019.
Kenya's National Treasury is facing a significant funding challenge, with a memo from acting Cabinet Secretary Ukur Yattani revealing that the government is seeking Sh131 billion to fund the Big Four projects. This includes emergency cost-cutting measures and revenue surrender from various government agencies.
According to the memo, dated September 24, 2019, the Treasury is requiring ministries to review their spending to save at least Sh53 billion, while State corporations are expected to surrender earnings amounting to Sh78 billion. This drastic measure is aimed at partially implementing the 2019/20 budget in favor of the Big Four projects, which have been prioritized by the government.
Revenue collection has shrunk by Sh91 billion, implying that the baseline used for the financial year is overestimated and likely to result in a shortfall by the end of the financial year. The Treasury has allocated Sh74 billion to the Big Four projects from the cut.
The austerity measures also target the Judiciary, which is required to cut its spending by nearly Sh3 billion. An internal memo by Chief Registrar of the Judiciary Ann Amadi reveals that all expenditures, except salaries, will be cut by half. The Judiciary has also decided to shelve mobile courts and will no longer carry adverts and publicity in the mainstream media, while judges and other judicial staff will not receive snacks, tea, and meal allowances.
Ms Amadi, however, told staff that Chief Justice David Maraga was negotiating with the Treasury and the National Assembly to reverse the cut. The office of the Chief Justice is reaching out to the National Treasury and National Assembly with the aim of ensuring that the reductions are reversed and the Judiciary's budget is not affected.
Other winners in the budget adjustments are the Department of Arid and Semi-Arid areas, whose budget was boosted by Sh2.6 billion, and Devolution, at Sh1.6 billion. The health sector also received a significant boost, with its ordinary budget raised by Sh21 billion to support the Universal Healthcare programme.
