Raila, Uhuru and Kalonzo’s retirement benefits slashed after withdrawal of Finance Bill

President William Ruto's administration has implemented budget cuts demanded by Gen Zs and other pro-governance reform agitators in a move that will greatly affect the operations of the government.

Political bigwigs enjoying exit benefits are also set to lose millions of shillings taxpayers cater for to keep them comfortable in retirement.

Former Prime Minister Raila Odinga's benefits have been reduced by Sh7.2 million. Among the cuts are for his local travel by Sh2.4 million and hospitality at Sh2 million.

In the estimates before the MPs, Sh696 million that was allocated to the office of the First Lady has been removed, as has the Sh557 million that was allocated to the office of the spouse of the Deputy President.

Job losses loom as the brutal cuts have affected basic salaries for their employees, personal allowances, local travel, foreign travel, and hospitality expenses.

Overall, the Ruto administration targets to slash the budget by Sh156 billion, being Sh122 billion for development and Sh34 billion for recurrent expenditure.

"The reduction is on account of budget rationalisation," Treasury Principal Secretary Chris Kiptoo said in a notice to Parliament.

Former President Uhuru Kenyatta's benefits have been slashed by Sh92 million, affecting his domestic travel by Sh28 million and Sh24 million for foreign trips.

Uhuru's budget for entertaining his visitors among other hospitality needs is down by Sh24.5 million. Estimates show his furniture and general equipment budget of Sh10 million has been slashed.

Former Vice President Kalonzo Musyoka (Wiper leader) has been hit with Sh8.8 million budget cuts while his compatriot Moody Awori has his allocation slashed by Sh2.1 million.

According to supplementary estimates before Parliament, the President has taken the lead, ceding Sh1.8 billion that was allocated to his office in the current financial year.

The Executive Office of the President had been allocated Sh5.4 billion but the budget has since been slashed to Sh3.5 billion.

Refurbishment suspended

The planned refurbishment of Harambee House has been suspended. The President's office, the first supplementary estimates for the 2024-24 fiscal year show, has also dropped plans for research and advisory forums.

President William Ruto addresses the nation from the State House in Nairobi on June 26, 2024, when he withdrew the Finance Bill following violent protests. (Photo: PCS)

The State House's budget has also been reduced by Sh5.1 billion including Sh3.6 billion for recurrent and Sh1.55 billion development expenses.

Deputy President Rigathi Gachagua's office budget has been slashed by Sh2.2 billion from the initial Sh4.8 billion and will now make do with Sh2.6 billion.

Part of the money was set aside for refurbishing the Harambee House Annex and the DP's official residence. Prime Cabinet Secretary Musalia Mudavadi has not been spared the cuts as his office has lost Sh419 million, besides Sh183 million for the state departments under the office.

Budgets for the office of First Lady Rachel Ruto and that of Gachagua's spouse Dorcas have also been scrapped in the changes Treasury attributed to the withdrawal of the Finance Bill, 2024.

To seal the funding gap of over Sh340 billion, Ruto's team said it would have to borrow a further Sh167 billion.

Plans by the DP's wife Dorcas Rigathi to screen 12,000 boys for drug rehabilitation, 18 youth camps, train 2,400 boys, mentor and coach 3,000 others and support 1,000 widows have been dropped.

"It is okay that the country doesn't want the second lady to have a budget, but I will continue to fight for the boy child even without the budget," Dorcas said recently.

"That is a vision and passion I have for the boy child. I cannot stop because I started even before I was in office; I believe you and I will be able to make it."

Parliament, for its part, is set to lose over Sh3 billion, being Sh1.8 billion in the case of the National Assembly and Sh1.3 billion for Parliamentary Joint Services.

Parliament's budget for the construction of Bunge Towers, installation of a security system, purchase of buildings, and refurbishment of various buildings as well as purchase of land for a studies centre have been affected.

The Senate budget has been slashed by Sh544 million while that of the Teachers Service Commission has been reduced by Sh10 billion, according to the supplementary estimates.