CS Mbadi moves to cut public office spending
The move comes as the government grapples with falling tax revenues and rising costs of running its operations.
Public offices may face tighter financial controls starting July as Treasury Cabinet Secretary John Mbadi outlines plans to lower recurrent expenditure in his first national budget.
The move comes as the government grapples with falling tax revenues and rising costs of running its operations.
Budget estimates tabled in Parliament propose reducing the recurrent budget to Sh1.72 trillion for the upcoming financial year, down from Sh1.73 trillion in the current year ending June.
The proposed cuts come amid President William Ruto’s recent expansion of the Executive through the formation of six additional departments in March.
According to the Treasury, the plan to curb non-debt-related recurrent expenses aligns with the 2025 Budget Policy Statement.
This policy outlines expenditure ceilings for various government departments and emphasizes the need for efficient public spending.
"Government will sustain measures to strengthen expenditure control and improve efficiency and effectiveness in public spending. These measures will include implementation of austerity measures aimed at reducing government recurrent expenditure," the Treasury wrote in the BPS in February.
Efforts to contain the cost of running public offices have remained a challenge for successive administrations, as operational expenses have consistently risen.
In the current financial year, the Treasury initially allocated Sh1.59 trillion for recurrent spending across ministries, departments, and agencies.
However, this figure was later revised upward to Sh1.73 trillion.
Between July 2024 and March 2025, these government bodies spent Sh991.75 billion on recurrent costs such as salaries, administration, operations, and maintenance.
This marks an increase from Sh905.78 billion spent during a similar period in the previous year.
The Sh85.97 billion surge in spending occurred even as President Ruto pledged more prudent use of public funds following widespread protests that led to the withdrawal of proposed new tax measures.
Although the Executive has grown in size, the Treasury is pushing ahead with efforts to rein in routine spending, suggesting that restraint in non-priority areas is still a key goal in the government’s fiscal strategy.