The state assembly is seeking the restoration of Sh1.7 billion of its Sh5 billion cut budget so that it can pay the salaries of staff in the dissolved office of First Lady Rachel Ruto.
State House Auditor-General Katu Ole Meteet on Thursday urged lawmakers to consider restoring at least Sh1.7 billion, including Sh591 million earmarked for salaries to staff in the First Lady’s office.
Despite President William Ruto dissolving the offices as part of an austerity package following the rejection of the Finance Bill 2024, Ole Meteet told MPs that staff had standing contracts which the state must honour.
Speaking at the Committee on Public Administration and Internal Security and on the estimates for the supplementary budget, Ole Metito said some of the office’s staff were on three-year contracts and some on five-year contracts and they must be compensated even if the office is dissolved.
“These people have signed a contract and if we stop them like this legal action will be taken,” Ole Metito said.
He was responding to Saku state assemblyman Dido Raso, who asked to know about the fate of employees of the first lady’s office.
“Yes, the position of First Lady has been abolished. I understand that it is not a constitutional position, but what about the fate of the young men and women who work there? They are innocent and should not be punished for the sake of others,” Raso asked.
He told lawmakers that even if staff are sent home, they must be paid at least two months’ salary in accordance with labour laws.
Ole Metito said the Office of the President had paid the highest price from the announced budget cuts and called on the committee to consider restoring some of the cuts to allow the Office of the President to continue operating as normal.
The First Lady’s officers were allocated Sh696 million, a 17.3 percent increase from last year’s budget allocation of Sh593.9 million.
In the mini-budget presented to Parliament, the Ministry of Finance scrapped budget items for the offices of First Lady and Second Lady Dorcas Gachagua, a move that has saved taxpayers a combined Sh1.25 billion this financial year.
The budget items Ole Meteet is seeking to reinstate include Sh591.9 million for remuneration of staff in the First Lady’s Office, Sh37.9 million for communications, equipment and services at the Presidential Office and Sh389.9 million for domestic travel and other transport expenses.
Other budgets that Ole Metito is asking lawmakers to reinstate are Sh114,642,002 for overseas travel, Sh25,668,265 for rental of productive assets, Sh43,917,240 and Sh532,144,973 for hospitality goods and services.
“I am appealing to this committee to reconsider the reintroduction of Sh1,736,305,955 which is a key budget item for operations and employee remuneration,” Ole Metito said.
He noted that the budget is crucial to the President’s operations as President Ruto continues to entertain other presidents and guests at the Presidential Villa, pointing out the example of entertainment.
“I understand that budget cuts need to be made, but they need to be made in a reasonable way that doesn’t result in offices being closed,” he added.
The revised budget shelved all the billions of dollars that were meant to be spent on renovating the three state houses in Nairobi, Mombasa and Nakuru, as well as other state government accommodation.
In the original budget, the parliament has requested Sh1.5 billion for the renovation of Parliament House and the State Guest House in the 2024/2025 financial year, which will be increased to Sh1.8 billion in the 2025/2026 financial year and Sh1.5 billion in the 2026/2027 financial year.
Sh250 million has been allocated for the renovation of State House in Nairobi, Sh240 million for State House in Mombasa and another Sh200 million for the renovation of the State House building in Nakuru.
The state houses also sought Sh270 million for the renovation of the fence and main building of State House in Mombasa and Sh200 million for State House in Nakuru.
Other millions of taxpayers’ money earmarked for the renovation of state lodges across the country included Sh125 million for the renovation of Eldoret State Lodge building and Sh35 million for the renovation of Sagana State Lodge, while the renovation of Kisumu State Lodge building was to cost taxpayers Sh14.9 million and the renovation of Kakamega State Lodge building was to cost Sh15 million.
Sh19 million was allocated for the renovation of Kisii State Lodge, while Sh5 million was allocated for the renovation of Mutito Andei Lodge.
The millions of dollars allocated for the renovations sparked a public backlash as funds were earmarked for areas deemed unnecessary at a time when Kenyans are struggling with the rising cost of living.
However, the revised budget does not include any funding for renovations to the state Capitol or the Executive Mansion.
