Kenyan new President William Ruto instructed the finance ministry on Thursday to cut 300 billion shillings ($2.5 billion) from annual government spending this year, to bring the country “back to sanity”.
President Ruto appointed his cabinet on Tuesday, naming former central bank governor Njuguna Ndung’u as finance minister to navigate the economy through rising inflation, a heavy debt burden and drought.
He also said he aimed to bring the recurrent expenditure down further next year by an undisclosed amount, in a bid to achieve a recurrent budget surplus by the third year.
The president did not give details on the expenditure to be cut.
Recurrent expenditure usually includes civil servant salaries, domestic and foreign interest payments, pensions and fuel costs for the government fleet of vehicles.