State House is now warning that its operations could grind to a halt following budget cuts necessitated by the rejection of the 2024/2025 Finance Bill. 

According to State House Comptroller Katoo Ole Metito, the State House budget has been reduced by 54%, from Ksh.9.496 billion to Ksh.4.382 billion, which will have a huge impact on the running of State House.

Speaking before the Committee on Administration and Internal Security, Katoo on Thursday pleaded with the committee to reconsider the significant cuts.

"If you put yourself in the shoes of the President, he says we can’t be pushing for budget cuts in other ministries without leading by example, but in the end, we might bring to a halt all the activities of the office. Let us reduce in a reasonable way, not close the office," he told the committee.

The staff working in the Office of the First Lady and her advisors will be the most affected, as Ksh.547 million that had been set aside for salaries has been cut following the president's pronouncement that the office will cease to exist.

However, Katoo is warning of legal implications if the staff’s contracts are terminated without following labour laws and wants the committee to reinstate the money.

"We are requesting that those funds be retained for now as we try to regularize. These people had contracts; most are not permanent and pensionable. They serve during the tenure of the presidency. Stopping their contracts just like that will have some legal repercussions," he said.

Katoo also lamented the withdrawal of funds meant for confidential use in the office of the President, stating that it could have serious repercussions on how the entire government is run.

"Look at the vote like confidential expenditure; it has been reduced to zero, and yet that is the heart of government operations," he lamented.

According to Katoo, although economic times are hard and every government institution is cutting its expenditure, there is a need to balance and ensure that the government continues to run.

"What we were requesting is that out of the Ksh.5.1 billion that is being reduced, you add us some Ksh.1.7 billion so that the budget cut is Ksh.3.3 billion, which will be around a 36 percent budget cut," he pleaded with the committee.

With Ksh.1.5 billion that was meant for the refurbishment of State House and State Lodges across the country also being removed, Katoo says that they could face cases in court as they had already entered agreements with contractors.