Ruto signs Appropriations Bill 2024 after withdrawing Finance Bill 2024

President William Ruto on Friday, June 28, 2024, signed the Appropriation Bill 2024 after rejecting the Finance Bill 2024.

This Act, effective upon publication in the Gazette, outlines specific allocations for various public services and purposes specified in its first schedule.

Ruto's decision

In explaining his decision to sign the Appropriations Bill amidst rejecting the Finance Bill, President Ruto stated, "On Wednesday, June 26th, 2024, I declined to sign the Finance Bill 2024 and issued a memorandum to the National Assembly rejecting all its clauses."

Citing constitutional imperatives, President Ruto added, "Articles 221 and 222 of the Constitution mandate the Assent to the Appropriations Bill by June 30th annually to ensure seamless government operations, particularly in delivering critical services."

Ruto instructed the National Treasury to promptly develop supplementary estimates aimed at reducing expenditure by the anticipated revenues from the rejected Finance Bill 2024.

He said that this reduction, totalling Kshs346 billion, would be equitably distributed between the national and county governments, encompassing adjustments across the executive, legislature, judiciary, and constitutional commissions.

"I have therefore assented to the Appropriations Bill 2024 and instructed the National Treasury to immediately prepare supplementary estimates to reduce expenditure by the amount of revenue that was expected to be generated by the rejected Finance Bill 2024.

"The reduction in expenditure, amounting to Kshs346 billion, will be borne equitably by both levels of government: the National and County Governments. With respect to the National Government, the reduction will be borne by the executive, the legislature, the judiciary, and our constitutional commissions," he added.

Ruto refers Revenue Bill

Ruto has referred the County Allocation and Revenue Bill back to Parliament and mandated the National Treasury to propose amendments to the Division of Revenue Act 2024, aligning with reduced revenues stemming from the rejected Finance Bill.

"As a result, I have referred the County Allocation and Revenue Bill to Parliament for necessary adjustments," President Ruto confirmed. "Furthermore, I have instructed the National Treasury to promptly submit amendments to the Division of Revenue Act 2024," he said.

The president concluded that by directing the National Treasury to prioritize funding only critical and essential services, stipulating that expenditure should not exceed 15% of the budget until the supplementary budget gains approval.

"I have also instructed all accounting officers to prioritize critical services," President Ruto reiterated. "This directive aims to uphold fiscal prudence and ensure efficient resource utilization during this period of adjustment."

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