President William Ruto has issued directives to rein in loss-making state entities and curb wasteful expenditure across government sectors.

Addressing chairs and CEOs of State corporations at State House Nairobi, President Ruto emphasized the imperative for prudent financial management, stating, "The time is up for loss-making parastatals. Now that the economy has stabilized, we cannot continue accumulating debt. Borrowing will only lead us down the cliff."

Ruto underscored the need for state entities to operate within their means, emphasizing that expenditure must never surpass revenues collected.

"The money some parastatals make does not belong to their boards or management. It belongs to the people of Kenya as returns on investment," he stated, condemning the diversion of funds towards extraneous expenses within parent ministries.

Expressing concern over rampant misuse of public resources hindering service delivery, President Ruto announced stringent measures to ensure fiscal accountability.

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Government budgets and expenditures will undergo rigorous scrutiny, bolstered by technological interventions to curb improper payments and enhance value for money.

The President outlined a comprehensive consolidation plan to streamline functions, eliminate duplication, and dissolve loss-making institutions.

"We must end excess capacity and shut down some of these loss-making parastatals," he affirmed, highlighting the illogicality of duplicated roles within certain agencies.

In a bid to achieve a balanced budget within three years, President Ruto mandated a 30 per cent reduction in recurrent budgets for state corporations.

Furthermore, commercial entities are directed to remit 80 per cent of their profits post-tax to the National Treasury, with regulatory institutions instructed to remit 90 per cent of surplus funds.

"We must get it right. We must do what is right. This is the time," President Ruto emphasized, underlining the necessity for collective compliance with the directives issued.

The President's directives signal a paradigm shift towards fiscal prudence and accountability, reflecting the government's commitment to sustainable economic transformation.

As Kenya navigates its financial trajectory, these measures are poised to reshape the operational landscape of state entities, fostering efficiency and fiscal responsibility in the public sector.