Uhuru: Brace for tough economic times ahead
Kenyans should brace for tough times ahead after President Uhuru Kenyatta gave the clearest indication yet of a limping economy when he announced far reaching austerity measures during this year’s state of devolution address.
Speaking in Sagana after the conclusion of the governors’ summit, President Kenyatta agreed with the county bosses to reduce the amount of money budgeted for travelling by half in order to shore up revenue.
The president asked counties to brace for tough times ahead and said the 2016-17 budget estimates will be lower than the 2014-2015 financial year.
And in what could anger the governors, President Kenyatta said money saved from the austerity will be channeled to national projects.
The cuts will also affect other arms of government including Judiciary, Parliament and the Executive.
The President announced the formation of a 10-member ad hoc committee that will also identify other austerity measures in both counties and national govt and the proposals incorporated in the 2016-17 budget.
The Governors were set to give their reaction after the live address.
Earlier on, the government accused counties of hindering the development of national flagship projects by making unrealistic demands.
Head of the presidential delivery unit Nzioka Waita cited the Nyandarua windpower project and the Meru solar project as some of the programmes that have been frustrated by counties.
He asked the counties to be realistic when demanding compensation and governors to stop incitement and have a longer term view of projects.