The President commanded that the government, including state enterprises, live within its means and refrain from needless spending.
Speaking to the chairs and CEOs of state enterprises at the State House, the head of state stated that certain agencies have been losing money for years and have drained their budgets.
The President stated, "the money some parastatals make does not belong to their boards or management." It belongs to the Kenyan people as a return on investment.
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He lamented that the exploitation of public resources had grown so widespread that it impeded service delivery and recommended that government budgets and expenditures be subjected to rigorous examination in the future.
He emphasized that the spending cuts would prevent excessive borrowing and expedite the government's reform plan.
The head of state informed the gathering that the government would embark on a complex consolidation process to eliminate duplication of functions, waste, and the closure of loss-making organizations.
He offered examples of parastatals with redundant and overlapping duties.
President Ruto stated that Kenya must begin living within its means and abandon the practice of running massive budget deficits.
The President also asked the CEOs to lower their recurring budgets by 30%.
Furthermore, commercial State firms must now contribute 80% of their after-tax profits to the National Treasury. Regulatory institutions were compelled to send 90% of their surplus funds to the Treasury.
