Treasury slashes budgets for First Lady, Mrs Ruto

Economy

Treasury slashes budgets for First Lady, Mrs Ruto

First Lady Margaret Kenyatta
First Lady Margaret Kenyatta. FILE PHOTO | NMG 

The Treasury has signalled its intention to reduce the amount of taxpayers’ money that goes to the offices of First Lady Margaret Kenyatta and Mrs Rachel Ruto, the wife of Deputy President William Ruto, in the next financial year starting July.

The sum will reduce by Sh281 million, representing a 39 percent drop. Budget documents tabled in Parliament last Thursday show that the Treasury has cut non-essential spending on budget lines like travel, entertainment, motor vehicle purchase and fuel for the two offices.

These are part of the government’s plans to reduce non critical spending following the coronavirus crisis that has cut State revenues on reduced economic activity and tax cuts imposed to protect the economy from the effects of the global Covid-19 pandemic.

The domestic and foreign travel budget in the office of Mrs Kenyatta has been reduced by 54 percent to Sh37.9 million while entertainment or hospitality allocation is down Sh101 million to Sh90.9 million.

Travel allocation for Mrs Ruto’s office for the year starting July will reduce by 52.8 percent to Sh51 million with the entertainment budget cut to Sh17.2 million from the Sh34.5 million allocated in the current fiscal year ending June.

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The cuts will see Mrs Kenyatta’s office budget drop to Sh238.8 million from the current Sh426.1 million. Mrs Ruto’s office budget will be slashed from the current Sh297.4 million to Sh213.6 million.

Taxpayers’ money that goes to the two offices has more than tripled since the Jubilee administration assumed office in 2013.

The Treasury allocated Sh723.6 million for the offices of Mrs Kenyatta and Mrs Ruto with salaries for their aides, travel and entertainment taking the bulk of the budget. The two received Sh187.3 million in the year starting 2013 when the Jubilee administration assumed power, reflecting a growth of 286 percent.

Mrs Kenyatta’s office budget increased from Sh114.4 million to Sh426.1 million while that of Mrs Ruto increased from Sh72.9 million to Sh297 million in the period under review.

The increase in allocation to Mrs Ruto’s and the First Lady’s offices was put under recurrent expenditure such as paying supplies, travel expenses and staff salaries. The increase came amid calls by the Treasury and President Uhuru Kenyatta for cuts on non-essential spending like catering and travel.

Top government officials are no longer allowed to travel outside the country without clearance from the President. Domestic travel is also keenly scrutinised. The directive is a result of funding gaps following reduced activity in the economy in the wake of the coronavirus pandemic, which has hurt tax collection on reduced economic activities that has led firms to cut jobs and pay following a plunge in sales.

Salaries for Mrs Ruto’s staff of Sh126.1 million account for 42 percent of the Sh297.4 million budget allocated to the office.

In the Office of the First Lady, hospitality expenses of Sh191 million or 45 percent of the Sh426 million will consume the bulk of budget in the current year. Combined with travel and pay for the aides, this account for 78 percent of the budget.

Mrs Kenyatta is known for her Beyond Zero Campaign, which aims to improve maternal and child healthcare in the country. Mrs Ruto has reduced her public activities. Her pet project is empowering poor women through business training and organising them into saccos to deepen financial inclusion.

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