The government has banned meetings in 5-star hotels & directs ministries and departments to hold meetings in boardrooms in the new austerity drive.
The National treasury reported on the government budget cuts that have targeted various items such as local and foreign training, office and general supplies, hospitality supplies and services, local and foreign travel, purchase of office furniture, purchase of office equipment, an bans meetings in high-end hotels.
The directive is part of the government’s efforts to cut public spending amid a widening budget deficit and mounting debt.
The national treasury also went further to order all ministries and departments not to buy new equipment, including computers and furniture, as well as to do away with other non-essential expenditures.
President William Ruto recently ordered Ministries, Departments, and Agencies (MDAs) to revise their budgets downwards in line with budget cuts.
“The budget cuts have targeted various items such as local and foreign training, office and general supplies, hospitality supplies and services, local and foreign travel, purchase of office furniture, purchase of office equipment, and various projects that have low absorption rates or challenges of implementation,” said National Treasury in a memo dated November 1, 2022, to all heads of State departments.
The new directives from the government are expected to hit the hospitality industry hard which is still healing from the covid-19 economic shutdown.
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The move is to help the government to limit spending this is us the treasury has a deficit amount of money to finance the financial year.
The IMF on many occasions has urged the Kenyan government to better tax collection and also to improve on the state loss companies.
The move by the government will also see a loss in allowance for civil servants who were going to the meetings.
