Treasury Slashes Budget by KSh23.9B: Ruto’s Office, NIS Face Big Cuts
Nairobi – Kenya’s National Treasury has shaken the nation with a drastic budget cut of KSh23.9 billion, signaling tough times ahead.
Treasury Tightens the Purse
Treasury CS John Mbadi confirmed the bold move, outlining key cuts across critical ministries.
“We will spend KSh4.67 billion on public service salaries and allowances,” Mbadi revealed.
“KSh235 billion will go towards pension and gratuity payments.”
Significantly, Treasury itself took the biggest hit. Its budget shrank by KSh6.97 billion this financial year.
Ruto’s Office Hit Hard
The Executive Office of the President is also feeling the pinch. The government slashed its budget by KSh3.4 billion.
This means Ruto’s office will now operate with KSh3.88 billion, down from KSh4.49 billion.
NIS Budget Takes a Blow
The National Intelligence Service (NIS), often shielded from budget cuts, was not spared this time.
The spy agency will see its allocation drop by KSh4.2 billion—from KSh55.65 billion to KSh51.45 billion.
Immigration Feels the Heat
The State Department for Immigration and Citizen Services will now have to work with KSh11.77 billion, down from KSh13 billion—a KSh1.2 billion cut.
Who Gained?
While some departments took heavy losses, others emerged as winners.
The Ministry of Defence, National Police Service, State Departments of Basic Education and Higher Learning, and Medical Services all saw budget increases.
Why the Cuts?
The Cabinet recently decided to cap the fiscal deficit at 4.5% of GDP for 2025/26. This is down from 5.3% in 2023/24 and 5.1% in 2024/25.
This move comes as President Ruto faces mounting pressure from global lenders like the IMF and World Bank to maintain tighter fiscal discipline.
What’s Next?
The budget estimates now head to Parliament for intense debate and approval. The reading is set for mid-next month, ahead of the new fiscal year starting July 1.
As Kenya braces for the impact, all eyes are on Parliament—and the political fallout from these deep cuts.
ALSO READ:Legal Showdown: Lobby Group Blocks Parliament’s Push to Entrench NG-CDF and Other Funds
Treasury Slashes Budget by KSh23.9B: Ruto’s Office, NIS Face Big Cuts
