News

 

Nairobi, 19th February, 2020

 

The Cabinet Secretary National Treasury and Planning, Amb. Ukur Yatani hosted all Chief Executive officers of government State Corporations and Semi-Autonomous Government Agencies (SAGAs) in a consultative meeting on financial management. In the meeting the CS urged the Chief Officers to be prudent in their budgeting while promising to be available to advise and guide them as required.

 

 

 

CS Yatani said the government will continue to rationalize both the recurrent and development budgets while ensuring that it does not impact negatively on productive areas of the economy. Among the steps taken by the National Treasury to reduce wastage of public funds include reducing training expenditure, conducting meetings and workshops in office boardrooms as opposed to hotels, minimizing delegations for foreign travel and also minimizing air travel as well. The cost of publicity and advertising should also be significantly minimized.

 

In his remarks the CS urged the State Corporations and SAGAs to clear their pending bills by 15th June 2020. He advised the CEOs that should their institution have any special reason as to why they could not clear their pending bills to ensure to see him by Friday 21st February 2020 for deliberation for special consideration. All the Chief Executive Officers should from Monday 24th February 2020 present him with a roadmap on how they intend to clear their pending bills. CS Yatani cautioned the CEOs of personal liability should they not clear their institutions pending bills by the set deadline.

 

CS Yatani also directed the SAGAs to refrain from taking each other to court for one reason or the other as litigations are expensive and pending bills as a result of court awards has gone well into the trillion mark. He encouraged the parastatals to go the arbitration way to reduce spending of public resources. He gave the CEOs of such parastatals until March 1st 2020 to withdraw all court cases and settle all their issues out of court or risk suspension. He said that they are only to go to court after approval by the National Treasury or the Head of Public Service.

 

The State Corporations and SAGAs have also been restricted from acquiring any new loans without the approval of the National Treasury. The Government has also issued a suspension on the budgets and put in abeyance all capital expenditures unless the particular capital expenditure is an on-going project. New projects can be undertaken only with specific approval in writing by the National Treasury. CS Yatani said that the National Treasury will ensure that no new commitments are entered into unless and until all outstanding obligations are cleared or are adequately catered for in the in the medium term.

The CS said that the 2020/2021 budget will be the lowest in recent years, and even lower going forward as he works to stabilize the economy, pay all pending bills and streamline the country’s expenditure.