Kenya stresses hiring freeze in tough budget rules

NAIROBI, Kenya

The hiring freeze imposed by the National Treasury for the next three financial years will be in force until advised otherwise, Cabinet Secretary Ukur Yatani has said.

Treasury Cabinet Secretary Ukur Yatani at Parliament Buildings on June 11.

The CS spelt this in tough rules for Ministries, State Departments and Agencies on how they are expected to implement the current budget.

In that regard, the hiring of new staff will be restricted to security agencies, health workers, and the education sector.

“Recruitment of new staff should only take place after the MDA has obtained approval from the National Treasury,” the June 28 circular to all ministries reads.

State agencies have also been barred from recruiting and placing interns with, Treasury directing that the lot will be strictly sourced by the Public Service Commission.

Even so, the interns’ intake will be subject to confirmation of the availability of funds from the National Treasury, which will have to approve the same before execution by PSC.

Yatani said replacement of staff as a result of natural attrition– death, retirement, sackings, is not frozen.

Such replacements will only be undertaken after Treasury confirms that funds are available, and approval by the relevant government entities.

Arguing that revision of terms of service and upgrading of positions leads to additional financial requirements, such upward movements remain barred.

“MDAs are reminded to seek the approval of the National Treasury on funding of the resultant cost before asking for approval of the relevant government departments and boards.”

In a blow to labour unions representing public officers, all Comprehensive Bargain Agreements with cost implications will have to be approved by the Treasury.

This will be before the unions engage the Salaries and Remuneration Commission on the proposed increments or salary adjustments.

“Such confirmation shall be communicated through the duly signed letters by the National Treasury principal secretary,” the circular reads.

Yatani has also ordered MDAs to conduct routine staff and payroll audits to ensure their accuracy and integrity.

Semi-Autonomous Government Agencies will also have to report their spending on personnel emolument every month.

“Officers are required to submit monthly payroll returns and quarterly performance reports to the National Treasury,” the CS said of domestic and foreign-funded projects.

The Presidential Delivery Unit will also receive quarterly reviews of the project performance.

Treasury has further directed accounting officers to follow procurement laws and start sourcing contractors in goods time to absorb funds allocated to them.

Yatani has further instructed accounting officers to ensure no forms of unauthorised, irregular, wasteful expenditure is incurred this financial year.

“Immediate corrective measures and disciplinary action should be taken against any public officer who commits an act of financial delinquency,” Yatani said.

He holds that all supplies will have to be committed against the approved procurement plan based on the approved budget.

“The provisions of the procurement law and regulations must be followed in all procurement transactions,” the CS advised.

Treasury has also directed MDAs to ensure all commitments for the supply of goods and services are entered into by May 31, 2022.

“No commitments should be entered into without adequate budgetary provision,” the circular copied to the Auditor General and Budget Controller reads.

On pending bills, accounting officers will be required to prepare updated records of all outstanding pending bills incurred after 2005 and report the same to the National Treasury by July 12.

For better projects uptake, Treasury has directed concerned officers to appoint officers as project managers and AIE holders for their respective projects.

MDAs involved in election preparation will be required to submit details of all election-related spending monthly.

Yatani has further warned that budget allocations for the Big Four plan and the Post Covid-19 Economic Stimulus Package will not be diverted, ring-fencing the funds for the budgeted purposes.

“Reallocations from statutory obligations or specific allocations recommended by the Budget Committee of the National Assembly is also not allowed,” the circular reads.

The Treasury further directed that all transactions on the current budget must be carried out in the IFMIS with MDAs further required to consolidate all annual subscriptions to international agencies.

Ministries with conditional grants earmarked for counties have also been directed to prioritise the expenditures as counties recognize them as revenue sources.

Treasury has further acknowledged the challenge of litigations arising from contractual breaches, citing the huge financial risks that follow.

Ministries have thus been asked to have contractors granted delays in writing and contracts amended in line with the requests.

“If deemed necessary, the MDA may extend the time, may impose a delayed penalty,” Yatani said. – The Star