President Uhuru Kenyatta’s administration is on the spot for introducing new projects against the law which bars the government from new initiatives in the middle of the financial year.
Chairmen of House committees yesterday questioned the idea behind the projects – mostly grounded on the Big Four agenda - citing possibility of unwarranted cuts on state departments’ budgets.
The projects presented for approval by Treasury CS Ukur Yatani include a textile park at the Naivasha Special Economic Zone at Sh8.1 billion.
Treasury also wants Parliament to approve Sh4.3 billion for electrification of the Naivasha Industrial Park and another Sh79 million for ICT connectivity.
The government is also seeking approval for Sh1 billion for printing of Huduma Namba cards and another Sh1 billion to deal with cybercrimes.
Sought under Public Works is approval for Sh335 million for constructing a parking lot at the park, Sh2.5 billion for a leather park at Kenanie, and Sh21.9 million for a constituency industrial development centre.
Also sought is funding for Dongo Kundu SEZ at Sh3.6 billion, Sh594 million for the Nairobi Bus Rapid Transport project and Sh478 million for rehabilitation of Nairobi-Konza metre gauge railway. Some Sh2.1 billion is being sought for a free port and industrial parks at the Mombasa SEZ.
Uhuru’s administration further wants Parliament to approve Sh5.3 billion for the James Gichuru-JKIA expressway; Sh3.8 billion for access roads to food security and nutrition facilities.
The government intends to spend Sh2.7 billion to relocate sewer and water pipelines along the expressway and a further Sh4.2 billion for the Northern Collector Tunnel.
MPs further poked holes on the request for Sh724 million for access roads to industrial parks (Sh519 million) and affordable housing (Sh205 million).
The government wants approval for Sh16 billion for roll-out of the Universal Health Coverage and Sh1.7 billion for hospital upgrades under the programme.
Under ICT, the government wants approval for Sh2.4 billion for the Konza Data Centre and Smart City; Sh774 million for health facilities; Sh28 million for leather park at Kenanie; and Sh7.9 million to Dongo Kundu SEZ.
Government also wants approval to spend Sh1.6 billion on electrification of level 3 and level 4 hospitals as part of the Big Four agenda.
Electrification funds have also been sought for Konza City (Sh398 million), food processing plants (Sh353 million), housing schemes in Starehe (Sh15.9 million), Shauri Moyo (Sh23.9 million), Ruai (Sh392 million), Kibera (Sh23.9 million), Mariguini (Sh15.9 million) and East Africa Portland (Sh392 million).
Treasury has sought to increase government spending by Sh80 billion – money it intends to raise from budget cuts affecting the Executive (85 per cent), Parliament (five per cent), Judiciary (five per cent), and CDF (five per cent).
However, lawmakers threatened to scuttle the budget should the Treasury proceed with the intended cuts on CDF cash.
MPs sought answers on how the government would plug a Sh146 billion funding gap occasioned by the adjustments in the face of low revenue collection.
BAC chairman Kimani Ichung’wa (Kikuyu) reprimanded the Treasury for failing to provide the Big Four implementation framework to guide the House on the allocations.
“We wonder whether the Executive takes resolutions by this House seriously. We also asked for a report on the Universal Health Coverage which is yet to be provided yet it was on this that we were to approve funding,” the lawmaker said.
Makali Mulu (Kitui Central) raised concerns that some stalled projects – such as Umaa and Badasa dam - which were about to be completed have not been factored.
“What happens to the stalled projects for which funding was approved in June? Is there value for money in some of these reallocations like that of Turkana Windpower?” the MP asked.
Maoka Maore (Igembe North) said: “We have a problem with the Treasury coming up with new projects yet there is no clarity on what happens to the unfinished ones. Let it leave CDF alone.”
In its new forecast, Treasury has reduced the revenue target by Sh108.7 billion citing challenges of drought, emerging priorities and the need for better growth.
Yatani told the Budget and Appropriations Committee that the realignment was directed by the Cabinet in a call to reduce recurrent expenditure in favour of development.
“The government is likely to further reduce recurrent expenditure by MDAs except salaries unless pending bills are paid,” the CS said. “The luxury of accounting officers not paying pending bills is no longer tenable.”
However, MPs raised concern on the funding gap citing dismal gains in a parastatal funds’ mop-up from which Treasury has raised Sh78 billion.
Yatani said the money, if left with the state agencies, has over time been used on non-essentials like fancy offices and luxury vehicles.
He said the new projects followed the lengthy planning process involving the Big Four projects, adding that some of the initiatives were settled upon after June.
