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Kenya

Rotich budget sets out aggressive cost cutting measures for government

He further explained that the government will introduce smart cards for officials to use on local and foreign travel to cut expenses/CFM NEWS

NAIROBI, Kenya, June 13 – The government has embarked on aggressive cost cutting measures to reduce spending which includes restriction of staff hiring and halting of new projects.

While tabling the 2019/2020 budget statement on Thursday afternoon, Treasury Cabinet Secretary Henry Rotich outlined other measures which include cleansing of the public service payroll to eliminate ghost workers who contribute to a ballooning wage bill.

“In order to contain the wage bill, I propose that we limit strictly the extension of services for the significant number of civil servants who are retiring at the age of 60 years. In addition, Mr Speaker, we will restrict new recruitment to key technical staff, security personnel, teachers and health workers,” he stated.

He explained that the government will introduce smart cards for officials to use on local and foreign travel for cost cutting measures in expenses.

“Expenditure on domestic and foreign travel has been growing due to frequent travels. To limit this expenditure, we are exploring the use of more efficient cost cutting approach including the use of electronic card system for all public officers traveling within and outside the country,” he stated.

He outlined that the government will also fast track migration away from the current integrated payroll and personnel data-based system to the IFMIS human resource module to improve payroll management.

“First we adopted a zero-based budgeting process to weed out non-priority expenditures from the budget. We have adopted a policy of nom new projects to ensure that government completes all ongoing projects,” he said.

“We are reviewing the portfolio of externally funded projects with a view to restructuring and realigning them to the big four plan. We are also taking measures to reduce spending on some specific programs which are not of high priority.”

He further pointed out that beginning next month, all government office spaces will be standardized by uniform cost leases and all existing leases re-negotiated.

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