No jobs as Ruto administration restricts new recruitment, promotion, and pay rise
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Ruto administration in a spending shocker sets cash limits to ministries and departments restricting recruitment, promotion, and pay rise
Ruto administration in a spending shocker sets cash limits to ministries and departments restricting recruitment, promotion, and pay rise.
As part of a broad range of steps to combat the wastage of public funds during tight budget conditions, the Treasury has established monthly funding restrictions for government ministries, departments, and agencies (MDAs) and prohibited hiring new workers, promotions, and pay rise negotiations.
The regular monthly cash payments to MDAs, according to Treasury Cabinet Secretary Njuguna Ndung’u, would depend on the amount of money that are available, with four types of expenses receiving precedence.
“Cash planning and setting of cash limits are intended to ensure more predictable execution of the budget, and consequently delivery of services and public investments,” Prof Ndung’u said in a circular to accounting officers of MDAs.
Category one expenditures under the new disbursement plan will pay for statutory obligations, such as debt repayments, wages, cash transfers to the aged and other vulnerable populations, pensions, and county equitable share.
Major social, economic, accountability, governance, and security programs, including foundational services and investments, fall under the second category.
All other government-financed expenses not falling under categories one or two are included in the third expenditure group.
The fourth expenditure category comprises externally funded projects categorized as revenue in the budget and for which funds are transferred to the exchequer.
“To enable a structured disbursement of cash to MDAs, the National Treasury will provide monthly cash limits for each quarter based on projected available cash for category 1, 2, and 3 expenditures and consequently, meet requests related to category 1 and 2 expenditures promptly and category 3 when cash is available in line with withdrawal requests,” Prof Ndung’u said.
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The Treasury restrictions also target personnel expenditure on hiring, promotions to higher ranks, or collective bargaining agreements with trade unions that have cost implications.
“Accounting officers should note that recruitment of new staff, replacement, upgrading or promotion of staff should only take place after MDAs have obtained written confirmation of the availability of funding from the National Treasury, and necessary approvals from the relevant entities in the public service mandated to undertake recruitment,” the CS said.
“All proposed collective bargaining negotiations with trade unions representing public officers with cost implications must be referred to the National Treasury to confirm the availability of funds before seeking the necessary advice from the Salaries and Remuneration Commission.”
In a further move aimed at streamlining expenditure, the Treasury has banned commitments for the supply of goods and services without prior approvals that are tied to available funds.
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