KENYA TRANSPORT MINISTER SAYS NEW INFRASTRUCTURAL ON HALT DUE TO BUDGET SHORTAGE

Transport and Roads Cabinet Secretary Kipchumba Murkomen has reiterated that the government will not initiate new infrastructural projects due to the budget shortfall in financing the projects.

CS Murkomen made revelations while answering questions on the floor of the House stating that his docket has 800 stalled projects worth Sh763 billion as of February 28 subject to increased figures due to accrued interest.

Murkomen who made an appearance before the National Assembly plenary told MPs that unless a project is funded by a congressional grant, they will not embark on it.

“As a result of the economic situation we have decided as Kenya Kwanza government to stop digging into the financial hole and as a result of that we are not starting any more projects unless it is funded by development partners,” he said.

The Ministry of Transport and Roads owes contractors Sh145 billion pending bills for certified work on road constructions to local and foreign contractors with some money used for land acquisition due to budget deficit over previous financial years.

“We are working with the National Treasury to allow us to negotiate with some contractors who are willing to resume work through a plan that has seen a few road projects being constructed,” Murkomen stated.

Previous regimes have spent massively on infrastructure projects in recent years most of which was money borrowed by the Jubilee government.

Budget cuts fronted by President William Ruto’s administration are set to delay major infrastructure projects as the government moves away from spending on areas considered of lower priority.

The International Monetary Fund (IMF) is pressing Kenya to implement a sound fiscal space by cutting expenditures while collecting more revenues, part of the conditions for the continuity of the 38-month budgetary support program.