Kenya dissolves more than 40 state companies, scraps first lady's budget

Kenya is to scrap more than 40 state-owned companies as part of austerity measures to address the country's budget crisis, President William Ruto announced. This comes after unprecedented anti-government protests forced the government to withdraw a controversial finance bill that had proposed tax increases. ''47 State Corporations with overlapping and duplicative functions will be dissolved, resulting in the elimination of their operational and maintenance costs, and their functions will be integrated into the respective line ministries,'' President Ruto said in a statement on Friday. The move is part of ''enhanced austerity measures'' his government has committed to implement aimed at aligning its expenditures with ''the budgetary implications of the withdrawal of the Finance Bill, 2024,'' he said. Workers at the companies will be transferred to ministries and other agencies. ''The number of advisors in government shall be reduced by 50% within the public service, with immediate effect,'' Ruto added. ''Budget lines providing for the operations of the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary shall be removed,'' the Kenyan president announced.