In last Thursday’s post I discussed the differences between the Australian and Kenyan governments in terms of spending priorities, highlighting the enormous percentage of the annual Kenyan budget spent on salaries for public servants. According to the Daily Nation, it will cost the Kenyan taxpayers $560 million in the next two months alone to fund the new “grand coalition” cabinet which has been formed as the “solution” to the problems caused by the rigged elections held four months ago.
A record number of 42 ministers were appointed in the grand coalition cabinet. Each minister is entitled to substantial salaries, allowances, perks and staff. In order to fund these, money is to be shifted away from hospitals and roads. The newly created office of prime minister, which is to be held by Mr Odinga (the man who apparently polled the most votes at the presidential election although Mr Kibaki was declared the winner), has been allocated $4 million as a recurrent budget and $3 million for development.
In order to pay for the new spending priorities, funds allocated for roads will be reduced by $44 million, education spending will be reduced by $166 million, the ministry of finance will have its budget reduced by $54 million, and many other ministries will have their budgets reduced by smaller amounts.