Ruto’s Cabinet Picks Win Backing From Kenyan Lawmakers

26th October 2022 By: Bloomberg

Ruto’s Cabinet Picks Win Backing From Kenyan Lawmakers

Kenyan President William Ruto
Photo by: Reuters

Kenyan lawmakers approved all the 24 cabinet nominees put forward by President William Ruto, cementing his control of the government two months after he won elections by a razor-thin margin.

Former central bank governor Njuguna Ndung’u will be the National Treasury secretary, while Musalia Mudavadi, who served as finance chief in the 1990s and briefly as vice president in 2002, is set to become the nation’s prime cabinet secretary. The National Assembly approved the nominations in a vote held on Wednesday in the capital, Nairobi, and the new ministers may be sworn in this week.

Ruto won 50.5% support in an Aug. 9 vote to secure the presidency of East Africa’s biggest economy, narrowly seeing off a challenge from former Prime Minister Raila Odinga, who garnered 48.8%. The new administration faces the daunting tasks of reigning in the nation’s debt burden and countering the surging cost of living.

It will also have to contend with a chronic drought that caused agriculture, the nation’s economic mainstay, to contract for the third straight quarter in the three months through June and hobbled tea and horticulture production.

Mudavadi and Ndung’u spoke extensively about the need to ease the nation’s debt burden during the vetting process. The cost of servicing Kenya’s public debt is poised to jump to 1.39 trillion shillings ($11.5 billion) in the year through June 2023, more than half of projected tax income.

The government will probably seek concessional financing in order to retire expensive domestic debt, Ndung’u told lawmakers earlier this month. He will likely have to review the budget in line with Ruto’s target of reducing 2022-23 fiscal year’s spending by about 9%, or 300 billion shillings.

Mudavadi said that Kenya plans to promptly settle its debt when it falls due. His comments came after the Treasury refuted a newspaper report earlier this month that the government failed to make an interest payment on a Chinese loan.

Kipchumba Murkomen, the transport secretary-designate, however told lawmakers that the government intends to renegotiate the terms of $5 billion of Chinese loans used to develop a railway, causing yields on the nation’s eurobonds to surge.

Ruto tapped allies Kithure Kindiki to head the interior ministry, Aden Duale as defense secretary and Davis Chirchir for the energy portfolio.