Head of Public Service, Joseph Kinyua ordered the CEOs of parastatals and heads of Semi Autonomous Government Agencies (SAGAs) to minimize on spending even as the government struggles to come up with a solution for the division of revenue bill.
“The government is currently seized with the alignment of the Financial Year 2019/2020 Budget towards support of the Big Four Agenda, the cabinet has directed all state corporations and SAGAs are only allowed to spend an amount equivalent to one quarter of last year’s recurrent budget,” a circular dated July 23 from the Head of Public Service Joseph Kinya.
“This amount should support all priority expenses over the first quarter ending 30th September 2019. Further, a moratorium is hereby issued placing in abeyance all capital expenditures until otherwise directed, ” the circular read.
This comes in after President Uhuru Kenyatta told off governors who are asking for more money that is meant to be allocated to the counties during the 2019/2020 financial budget.