Govt suspends procurement, printing of corporate wear by state organs
Head of Public Service Felix Koskei further ordered the suspension of the purchase of promotional items such as calendars, diaries, umbrellas, power banks, key holders, bags, flasks, cups, branded traditional blankets (shukas) and notebooks.
The government has directed all Ministries, State Departments, State Corporations and agencies to optimise their operations by rationalising all non-priority expenditures in line with guidelines issued by the National Treasury.
Head of Public Service Felix Koskei in a circular to all Principal Secretaries and CEOs of State Corporations, ordered the suspension of procurement and printing of corporate wear, including branded merchandise.
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The corporate wear includes t-shirts, shirts, tracksuits, and any other branded clothing items and the purchase of promotional merchandise such as calendars, diaries, umbrellas, power banks, key holders, bags, flasks, cups, branded traditional blankets "shukas", notebooks, and any other promotional materials.
“The policy on fiscal consolidation is anchored upon enhanced revenue mobilisation as well as austerity measures underpinned by the rationalisation of non-priority expenditure and
implemented in a manner that protects essential social development spending,” Koskei said in the circular dated March 18, 2024.
The Head of Public Service said the directives are in line with President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA) and within the framework of a macroeconomic strategy focused on fiscal consolidation.
On Tuesday, Ruto directed all parastatals to cut their approved budgets by 30 per cent, noting it is part of the government’s to do away with unnecessary spending.
President William Ruto during a meeting with all parastatal chairpersons and chief executive officers at State House in Nairobi on March 26, 2024. (Photo: PCS)
He announced the directive during a meeting with all parastatal chairpersons and chief executive officers at State House in Nairobi.
In the gathering, Ruto also announced all loss-making parastatals will be shut down.
“We have to be honest, we must change our country. I want some of those institutions to volunteer. Now that the economy has stabilised, we cannot continue accumulating debt. Borrowing will only lead us down the cliff,” he said.
“The money some parastatals make does not belong to their boards or management. It belongs to the people of Kenya as returns on investment," he added.
