The government has suspended all capital expenditure in state corporations and Semi-Autonomous Agencies (SAGA) in a move directed at the alignment of the 2019/2020 Budget towards support for the Jubilee Government’s Big Four Agenda, Kahawa Tungu has learnt.
In a circular dated July 23 directed to all Chairpersons and Chief executive Officers (CEOs) of the institutions, the Head of Public Service Joseph Kinyua, directed that no such expenses are to be undertaken unless it involves an ongoing project and is specifically approved by the National Treasury.
According to the circular, this follows a directive by the cabinet that the agencies are only allowed to spend an amount equivalent to one-quarter of last year’s approved recurrent budget.
“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 reads in part.
The commission, further, stated that during the moratorium period a team established by the National Treasury, comprising officials from respective line ministries and the presidency, will undertake a review and rationalization exercise, touching on the individual State Corporations and SAGAs.
“Consequently, all State Corporations and SAGAs are required to submit information to the Director-General, Public Investment and Portfolio Management, National Treasury by 31st July 2019,” Kinyua said.
He directed all board directors of the institutions to enforce the full compliance of the directive.
The Big Four Agenda items are food security, manufacturing — mainly focusing on job creation, affordable universal health care and affordable housing.
Here is the circular: