Why Ruto’s cuts are leaving MPs between a rock and a hard place

The Budget and Allocation Committee chaired by Kiharu MP Ndindi Nyoro is expected to submit a report on the supplementary budget 1 by Wednesday, 20 July 2024. Presentations by various agencies to the committee paint a bleak picture of what lies ahead if the amendments are passed by Parliament.

Some agencies told MPs that there were already ongoing contracts that the government had committed to and that terminating them would have serious legal consequences, ultimately costing the government a lot of money.

In addition, there is a risk that the medical contract for teachers, which has a term of three years and has been in progress for two years now, will be terminated as early as December 1, 2024. This measure will further expose the government to lawsuits.

The chairman of the committee, Julius Melly, criticised the Ministry of Finance for the cuts, saying that they pit the government against the people.

“You can’t turn the government against the people, Gen Z is now on the streets and you want their parents to join them the next day because of the failed implementation of CBA? Said Mr Melly.

IEBC informed MPs on Wednesday, July 17, that their assets are now at risk of being auctioned off as the commission is unable to allocate sums of Shs 401,778,417 due to lack of budgetary resources.

Mr Nyoro warned on Friday, July 19, that the country should brace itself for more cuts. He said the commission has scheduled a meeting this weekend to identify more areas where cuts will be implemented.

“Our work is to identify areas where further cuts are needed and spend that money on development areas that can be felt by the people. We have another consultation meeting with the Ministry of Finance this weekend for more cuts. The cuts were not enough,” Mr Nyoro said.

Kitui Central MP Makali Mulu urged all agencies to realise that everyone has been affected by the cuts and that some plans will have to be put on hold as the country comes to terms with its current financial situation.

“It is a difficult balancing act and a dilemma, but if we can hold on to some essentials for a year while we try to find our feet as a country, then it is possible to finance the budget,” said Dr Mulu.

On Friday, July 19, the chairmen of the various departmental committees appealed to the budget team to reinstate the millions of shillings that had been cut from various government agencies.

Justice and Legal Affairs Committee Chairman Gitonga Murugara called for the repayment of Shs100 million to IEBC, which should be used to pay the Kenya Post Office, which owes the Commission Shs399 million.

“Even in the upcoming midterm elections, the Commission will need Posta to transport materials

The commission also wants the commission to be given Sh50 million to enable it to meet its legal contractual obligations such as maintaining the KIEMS kits and renewing ICT licenses, which are crucial for voter registration and conducting by-elections.

“You can imagine that if information leaks out that IEBC cannot renew its license, it will be said that they have started sabotaging the commission,” Mr Murugara said.

The electoral office had warned that without an extension of the KIEMS Kits contract, they would not be able to provide voter registration and education.

The commission also wants the judiciary to recover Sh381 million, which is meant to support the Ajira programme, which will see 1,000 new people hired on long-term contracts to support the judiciary’s digitalisation programme.

“This will create employment for the youth who will be doing transcription of court proceedings for the judiciary,” Mr Murugara said.

“We don’t want any more problems with our young people. If this allocation is withdrawn, it means they will go home,” he added.

The party also wants an additional Sh20.4 million for the Office of the Registrar of Political Parties to enable it to meet its contractual obligations regarding health insurance for staff.

The committee also wants the Office of the Director of Public Prosecutions to be given Sh20 million to enable the Office to implement the Uadilifu Case Management System-ODPP.

The organisation also wants Sh30 million to be donated to the Ethics and Anti-Corruption Commission for the ongoing renovation of the EACC headquarters.

Mr Murugara warned that if the allocation is not given, the project is likely to stall and there is a chance of litigation and rising costs.

It has also been proposed to allocate 100 million shillings to the Kenyan Law Faculty, whose budget has been completely scrapped.

The committee also wants the State Department for Correctional Services to be given Sh1.2 billion to facilitate the recruitment of 3,000 additional prison officers. The decision is based on the increasing number of prisoners, which currently stands at an average of 63,000, and natural attrition.

Kibwezi West MP Mwengi Mutuse warned the committee of legal consequences if some of the money is not given to the agencies.

“If you have ongoing contracts and the budget is completely cut, people will go to court and the government will be forced to pay the amount plus interest. This will be expensive for the government in the long run,” Mutuse said.

Chairman of the Land Commission Joash Nyamoko also implored the commission to consider restoring some of the cuts in the Ministry of Lands and NLC, which he said are two sources of revenue for the government.

Mr Nyamoko warned that the proposed cuts to NLC development spending in the supplementary estimates could lead to serious litigation and more pending bills.

The Land Affairs Committee noted that the 100 percent cut in NLC development expenditure of Shs147.8 million this financial year will have a major impact on ongoing contracts worth Shs33.2 million and Shs114.3 million set aside for the development of a digital public land inventory database for all public lands.

He also appealed to the commission to refund Sh200 million meant for the housing of those displaced by El Niño in Tana River County and another Sh250 million for those affected in Mahi Maiu.

“There are times when you need a human face, even when there are budget cuts. These people are still in camps but only Sh20 million has been given for their resettlement, which is not enough,” Mr Nyamoko said.

Nelson Koech, chairman of the Defense Committee, said ambassadors and high commissioners recently approved by parliament cannot report to their posts because the State Department has no budget for them.

Security chairman Gabriel Tongoyo said the police are at risk of operating without medical cover. He pleaded with the budget team to find an allocation, as the officers cannot operate without cover due to the nature of their work.