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{
    "id": 1334252,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1334252/?format=api",
    "text_counter": 165,
    "type": "speech",
    "speaker_name": "Hon. Kipchumba Murkomen",
    "speaker_title": "The Cabinet Secretary for Roads, Transport and Public Works",
    "speaker": {
        "id": 440,
        "legal_name": "Onesimus Kipchumba Murkomen",
        "slug": "kipchumba-murkomen"
    },
    "content": "State Department for Roads has a significant budget deficit, leading to inadequate allocation for road projects. The implementation of the Kenya Road 10,000 Kilometres Programme, from the 2013/2014 Financial Year, took place in the absence of anticipated progressive rise in budget ceilings by the National Treasury. This led to a portfolio of projects not being adequately funded. This programme rollout ended a full cycle in the 2017/2018 Financial Year when the budget stress started being witnessed. In the first and second years of the Kenya Road 10,000 Kilometre programme, an average allocation of Ksh20 billion was provided. It was expected that this allocation would progress upwards. However, over time, ceiling allocations for roads started diminishing to an average of Ksh55 billion from the 2017/2018 Financial Year. In the 2021/2022 Financial Year, the State Department had an allocation of Ksh55 billion for contracts against an outstanding project portfolio of Ksh900 billion as at 1st July 2022. To address the issue of the outstanding portfolio vis-à-vis the resources available, the State Department embarked on a reduction of the portfolio, which currently stands at Ksh700 billion. The reduction entailed dropping some planned but not yet awarded projects. With an average of Ksh55 billion, the Government of Kenya component for contracted works and land compensation, the outstanding portfolio will take a minimum of 15 years to complete, assuming that all factors like inflation, claims and interest remain constant. The limited allocation vis-à-vis the outstanding project portfolio result in thinly spread allocation for projects. Most of the projects that the current Government is implementing were awarded prior to the 2020/2021 Financial Year. To address the issue of marginalised counties, in terms of roadworks, the State Department would have to increase the portfolio projects to address the disparity. This would, however, mean even thinner spread of allocation and more years to complete any of these projects. The thin spread of the Government’s available funds means that the road projects take longer to complete. They become more expensive due to the passage of time and they attract interest and more claims. In the current financial year, this House allocated Ksh76 billion to the State Department for Roads against a request of Ksh250 billion by the National Treasury. Therefore, the State Department started this financial year with a budget shortfall of 70 per cent. In the First Supplementary Budget, the Ksh76 billion was reduced to Ksh61 billion. Out of the allocated Ksh61 billion, the amount for road development is Ksh46 billion. This inadequate budget provision compared to the huge portfolio of road projects has led to stalling of road projects everywhere in the country. I insist that this is affecting every part of the country. One part of the country thinks that another part is being considered and vice versa. Out of the outstanding Government’s portfolio, there is Ksh155 billion on pending bills as at 30th October 2023. The money available to service these pending bills is Ksh46 billion, which is less than one-third of the provision required to pay outstanding bills on road projects in addition to more work that will be certified within the remaining portion of the financial year. In associating with the large stock of pending bills..."
}