Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1233046,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1233046/?format=api",
    "text_counter": 228,
    "type": "speech",
    "speaker_name": "Hon. Kipchumba Murkomen",
    "speaker_title": "The Cabinet Secretary for Roads and Transport",
    "speaker": {
        "id": 440,
        "legal_name": "Onesimus Kipchumba Murkomen",
        "slug": "kipchumba-murkomen"
    },
    "content": "pending bills amounting to Ksh35 billion is owing to matters related to land acquisition. The actions we are taking are as follows. In line with the Kenya Kwanza Manifesto, we have committed ourselves to complete all ongoing projects. We are negotiating with contractors. Within the last six months, we were able to secure some amount of money. Given the magnitude of pending bills, this amount was spread thin amongst service providers and contractors could not go back to the sites to resume works. Remember that this spreading thin is not as a result of a decision by the Ministry of Roads, Transport and Public Works. It is because of the budgeting that is done by this august House. Consequently, as a result of that situation, we have had to result to requesting the National Treasury to allow us to negotiate with contractors who are willing to resume works. It is true that a few road projects across the country have resumed and you have seen us launching some of them. Hon. Speaker, it is important for me to say it in this very important Chamber. You have seen us re-launch projects that were initially launched almost eight years ago. That is because they were long forgotten. One case is when the President was recently launching a project in Nyandarua County. I know many people were concerned about why it was being re-launched. A project that has stayed for more than seven or eight years is long forgotten and it needs to be given a new lease of life. It is like it is being done for the first time. Working with the National Treasury and in keeping with the economic plans of the Government in the current financial year to stop borrowing, it is expected that in the next financial year, the economic situation will have improved to enable resumption of access to funding on affordable terms. We know that, as a result of the financial and economic situation that we have in the country, there was a decision to stop continued digging of the financial hole. As a result, projects have not resumed on time. Pursuant to advice from the National Treasury, we have been patient because we were told that if we keep in line with the financial plan that the National Treasury has for this financial year, in the beginning of the next financial year, we might be able to access financial support and lending at affordable terms for us to borrow and clear the remaining projects. Another measure we have taken is that we are not starting any new projects, unless they are funded by development partners on concessional terms, or if this House allocates funds to deal with emergencies such as security roads, or access to new Government projects for example, dams, hospitals, public institutions or new housing projects. We appreciate bilateral and multilateral development partners for their immense support on concessional terms. This has enabled us to start new projects that otherwise, we could not have done. Hon. Speaker, allow me to use this opportunity to mention the Horn of Africa Gateway Development Projects which are funded by the World Bank and the African Development Bank as an example of this concessional support. We have other bilateral support that we receive from other lenders across the country. Cognisant of the financial situation which has built up over the last five years, our first duty as a responsible Government is to stop the situation from deteriorating further through concessional and affordable borrowing. We recently decided to access the Annuity Fund to enable us to continue with this project. A meeting will take place tomorrow to ask the Committee responsible for the Annuity Fund to allow us to access Ksh12 billion that is in the account. This amount will enable us to pay some of the pending bills and hence, bring some contractors back on site and resume a number of projects. I thank contractors who, despite the situation we have been facing, decided to continue with projects, even long after we were unable to pay them. In the Report I have tabled, you will see that we owe some contractors up to Ksh17 billion. We owe some local contractors up to Ksh5 billion. I totally appreciate their patience. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}