Kenyan President William Ruto, addressing the nation on Friday, announced plans to raise borrowing while also proposing significant cuts to government spending. The purpose of this action is to manage a severe $2.7 billion budget shortfall that resulted from the abandonment of a controversial tax proposal. Originally meant to raise more money, this initiative was put on hold as a result of strong nationwide opposition.
President Ruto’s response to the financial shortfall involves a dual approach: reducing government expenditures by 177 billion shillings ($1.39 billion) and increasing state borrowing by approximately 169 billion shillings. This financial restructuring is crucial for the fiscal year that commenced this month. The adjustments come as the president grapples with maintaining fiscal responsibility while addressing the demands of international lenders like the International Monetary Fund (IMF) and responding to domestic pressures from a populace struggling with increasing living costs.
A series of youth-led protests serve as a context for these economic decisions, marking the biggest crisis Ruto has encountered since taking office two years ago. At least 39 people were killed in clashes that broke out during last week’s brief invasion of the parliament, which was sparked by the opposition to the proposed tax rises.
Ruto presented a list of budget cuts in a speech that was broadcast live. These include a 50% cutback in the number of government advisors and the closure of 47 state corporations. In addition, budgetary provisions for the spouses of the president and deputy president would be eliminated, and public office holders will not be permitted to travel for non-essential purposes.
Expressing a firm resolve to steer the country toward economic stability, Ruto stated, “I believe these changes will set out our country on a trajectory towards economic transformation.” He emphasized the necessity of these cuts for setting a foundation for future financial health and governance efficacy.
Additionally, President Ruto announced a forensic audit of the national debt, which currently exceeds 70% of the GDP. This audit is part of a broader strategy to reassess and possibly restructure the country’s financial commitments and governance frameworks. He also stated plans for imminent changes to the government structure, aiming to enhance efficiency and accountability.
Following his address, President Ruto engaged with the public through a live audio forum on the social media platform X, focusing on youth engagement. This session featured pointed questions about ongoing issues such as police brutality, corruption, and overall economic policy. Notably, activist Osama Otero confronted the president about the alleged state security abductions of protesters, sharing his personal ordeal of being abducted and questioned. In response, Ruto apologized for the mistreatment and vowed to address these serious allegations.
Protests have continued despite the president’s attempts to put an end to turmoil through changes in policy and public discussion. Even if the passion and attendance of protests have fluctuated, some groups continue to strongly demand Ruto’s resignation. There have been several charges of politically motivated thugs and criminals being involved in violent and looting incidents during recent protests.
