State House has issued a warning that its operations could come to a standstill due to budget cuts prompted by the rejection of the 2024/2025 Finance Bill.
State House Comptroller Katoo Ole Metito stated that the budget has been slashed by 54%, dropping from Sh.9.496 billion to Sh.4.382 billion, which will significantly impact State House functions.
During a presentation before the Committee on Administration and Internal Security, Katoo appealed to the committee to rethink the severe budget reductions.
He highlighted the president’s stance, saying, “If you put yourself in the shoes of the President, he says we can’t be pushing for budget cuts in other ministries without leading by example, but in the end, we might bring to a halt all the activities of the office.
Let us reduce in a reasonable way, not close the office.”
The Office of the First Lady and her advisors will be particularly affected, as Sh.547 million allocated for their salaries has been cut following the president’s announcement that the office will be dissolved.
Katoo cautioned about legal consequences if staff contracts are terminated improperly and urged the committee to reinstate the funds.
“We are requesting that those funds be retained for now as we try to regularize.
These people had contracts; most are not permanent and pensionable.
They serve during the tenure of the presidency.
Stopping their contracts just like that will have some legal repercussions,” he explained.
Katoo also expressed concern over the removal of funds for confidential use in the President’s office, noting that this could severely impact government operations.
“Look at the vote like confidential expenditure; it has been reduced to zero, and yet that is the heart of government operations,” he said.
While acknowledging the economic challenges and the necessity for budget cuts across all government institutions, Katoo emphasized the importance of maintaining a balance to ensure continued government functionality.
He proposed, “What we were requesting is that out of the Sh.5.1 billion that is being reduced, you add us some Sh.1.7 billion so that the budget cut is Sh.3.3 billion, which will be around a 36 percent budget cut.”
Additionally, Sh.1.5 billion intended for the refurbishment of State House and State Lodges nationwide has been removed, which could lead to legal issues since agreements with contractors have already been made.
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