President Ruto With Treasury CS Njuguna Ndung’u

The government has prohibited State officials from holding meetings in five-star hotels.

The directive is part of new austerity measures announced by President Ruto last week to cut non-plan expenditures by State departments.

Going forward, the government through the National Treasury has directed all official meetings to be held in boardrooms of government offices and departments.

The Treasury has also ordered all ministries and departments not to buy new equipment, including computers and furniture. They are also expected to do away with other non-essential expenditures.

As part of the new cost-cutting measures, the government has also banned the funding of lunches by State officers.

This comes after President Ruto 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 National Treasury has complied with the requirement and this constrained the financial year 2022-23 budget. Subsequently, it has become inevitable to cut down on some activities and effect the following control measures to manage expenditures.

“All directorates, departments and units are, therefore, requested to comply to ensure no commitments are made without supporting funding in line in line with the Public Finance Management Act and its supporting regulations,” the Treasury added.