Ruto's Advisers to Cost Kenyans Sh1.1 Billion

The Kenyan government under President William Ruto is poised to allocate a sum exceeding Sh1 billion for the maintenance of his advisory units.

This is according to budget documents presented to Parliament. This figure signifies an increase from the previous fiscal year's expenditure of Sh977 million. The advisory units, comprising six distinct entities, will primarily utilize these funds for salaries, travel expenses, and entertainment purposes, with a total allocation of Sh759 million. This significant financial commitment towards presidential advisors comes at a time when the government is actively seeking to curtail unnecessary expenditures, such as those related to overseas trips and hospitality to reduce the fiscal deficit.

The magnitude of the budgetary allocation for advisors under the Ruto presidency has raised concerns, particularly when compared to the expenditures incurred during the tenures of his predecessors Uhuru Kenyatta and Mwai Kibaki. Situated within the confines of State House, a cohort of advisers wields significant influence over policy formulation. These advisers report directly to President Ruto and have played a crucial role in shaping executive decisions that impact economic policies. Kenya has adopted a model akin to the United States, wherein the President assumes the mantle of policy direction, with advisers occupying executive roles.

However, this approach has imposed a substantial financial burden on taxpayers. The six advisory units are poised to receive a budgetary allocation of Sh280.5 million for the upcoming fiscal year, marking a 35% increase from the current allocation of Sh207.8 million. This allocation falls under the purview of the policy analysis and research unit of the State House, which has witnessed a massive increase from Sh87.2 million during the Kenyatta presidency to the present figure of Sh977 million. In contrast, Kenyatta's advisory arrangement with individuals such as Prof Mutahi Ngunyi was relatively ambiguous and not explicitly outlined in State financial statements.

More than half of the budget is dedicated to the management of the economy, encompassing entities such as the Office of Economic Transformation, the Council of Economic Advisors, and fiscal affairs and budget policy. Among the six advisory entities, Dr David Ndii holds the preeminent and influential position as the chair of the Presidential Council of Economic Advisors. Alongside Dr Ndii on the council are esteemed members such as Mohammed Hassan, a distinguished investment banker, and Dr Nancy Laibuni, formerly associated with the Kenya Institute for Public Policy Research and Analysis (Kippra). Dr Ndii's team has been allocated Sh194.5 million, with Sh88 million earmarked for travel expenses, Sh23 million for entertainment, and Sh9.4 million for communication items like mobile phones and airtime, in addition to salaries.

Interestingly, Dr. Ndii has been an advocate for budget reductions, particularly for non-essential expenditures as Kenya strives to achieve a balanced budget within the next three years. The country has grappled with significant fiscal deficits over the past decade, primarily to support ambitious infrastructure projects. However, this strategy nearly backfired when the government's ability to repay debts came into question. In addition to curbing spending and reducing the budget deficit, Ruto's administration, which assumed office in 2022, has implemented new tax measures, prompting some individuals and organizations to challenge these measures in court.

Another prominent figure within the advisory ranks is Henry Rotich who previously served as Cabinet Secretary in the National Treasury for six years. Rotich currently holds the position of senior adviser and head of the office of fiscal affairs and budget policy in addition to his role on the council. In February, Rotich assumed his current position after being acquitted of corruption charges related to Sh63 billion tenders for two dams. His office has been allocated a budget of Sh100 million, with Sh41 million earmarked for travel expenses. Rotich's economic advisers have been instrumental in shaping Kenya Kwanza's controversial policy decisions, including the implementation of various tax measures.