President Uhuru Kenyatta has proposed a reduction on expenditure across all arms of government.
But we still face a financing gap. This measure will not suffice to balance our budget, as required by law. Therefore I have also proposed wide-ranging cuts in spending as well as austerity measures across all arms of government.
— Uhuru Kenyatta (@UKenyatta) September 14, 2018
In an address to the nation on Friday, he noted that despite the move to raise revenue through tax on petroleum products, the country still faces a huge financial gap.
“These cuts will target less essential spending like hospitality, training and seminars, foreign and domestic travel and other similar categories,” the President said.
These budget cuts ask of us in government that we tighten our belts. It also ensures that the sacrifices made by tax-compliant Kenyans are matched by discipline from all of us in the public service.
— Uhuru Kenyatta (@UKenyatta) September 14, 2018
In March this year, Treasury CS Henry Rotich revealed that Kenya has a budget deficit of Ksh.587.7billion with a planned expenditure of Ksh.2.49trillion.