RUTO threatens State Corporations to give him 80% of their profits or else he will shut them down ASAP

Wednesday, March 27, 2024 - President William Ruto has directed all commercial state corporations to remit 80 per cent of their profits after tax to the National Treasury. 

Speaking during a meeting with parastatal heads and CEOs of state corporations at State House Nairobi, Ruto threatened to close all loss-making government institutions in three years as he pushes full steam ahead toward a balanced budget. 

"We will give you instructions on what to do with the other 20 per cent," he stated.

Ruto also ordered regulatory institutions to remit 90% of their surplus funds to the Treasury.

“Our budgets and expenditures must be subjected to rigorous audit to eliminate abuse of public resources. We will leverage on technology to maximise on the value for money and boost service delivery,” Ruto stated.

“The time is up for loss-making parastatals,” he added.

The president affirmed that state corporations must stop wasteful expenditure, including financing largesse in their parent ministries and unnecessary procurement.

Established under the State Corporations Act, state corporations include; the Central Bank of Kenya, the Kenya Revenue Authority, the Insurance Regulatory Authority, the Competition Authority of Kenya, and the Retirement Benefits Authority among others. 

These institutions have for long been a bone of contention on whether or not Kenyans are getting value for money. 


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