President William has ordered all commercial State corporations to remit 80 percent of their profits after tax to the National Treasury.
Speaking on Tuesday, March 26 during a meeting with chairs and CEOs of State corporations at State House Nairobi said he would give directions on how the corporations should spend the remaining 20 percent of profit.
“We will give you directions on what to do with the remaining 20 percent,” said President Ruto.
He directed regulatory institutions to remit 90 percent of their surplus funds to the Treasury noting that everyone must comply with the order.
Ruto urged the corporations to live within their means and not to exceed revenues collected.
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“The money some parastatals make does not belong to their boards or management. It belongs to the people of Kenya as returns on investment,” Ruto stated.
The Head of State also directed rigorous scrutiny of Government budgets and expenditures to maximize value for money.
“We will also leverage on technology to check on improper payments and maximise on the value for money,” he asserted.
President Ruto explained that the move to reduce expenditure will stop unnecessary borrowing and accelerate the government’s transformation agenda.
Further, the President mentioned that the government will engage in an elaborate consolidation process that will stop duplicity of functions, wastage, and winding up of loss-making institutions.
“It is illogical. We have to shut down some of these loss-making parastatals. We must end excess capacity, said Ruto.
He added, “In three years’ time, we must run a balanced budget. It won’t be easy but we must do it.”
