• In June 2020, Water and Irrigation PS Joseph Irungu said Sh600 million was needed to complete the 10,000-acre Galana-Kulalu model farm after the Israeli company Green Arava pulled out.
• The PS said the decision was made due to a breach of contract by the Israeli company.
The National Assembly Committee on Environment and Natural resources wants the treasury to release Sh400 million for the completion of the second phase of the Galana Kulalu food security project.
The National Treasury has yet to release Sh400 million to help complete the remaining 5,000 acres of the 10,000-acre Galana Kulalu model farm.
Parliament's Committee on Environment and Natural Resources has called upon Treasury to release the money for the second phase of the food security project.
Led by committee chair Kareke Mbiuki, the legislators said the funds are meant to help the National Irrigation Authority to complete developing infrastructure in the remaining 5,000 acres to pave way for private investors to take up farming ventures.
Currently, the second phase of the Galana Kulalu project is 30 per cent complete. The remaining 70 per cent of works is expected to be complete by February 2022 but will depend on the availability of resources.
Speaking during a visit to Galana Kulalu on Friday, Mbiuki explained that the project started in 2013 at a cost of Sh14 billion but was later scaled down to Sh7.2 billion.
“Unfortunately there were some irreconcilable differences between the National Irrigation Authority and the first contractor Green Arava and subsequently the contract was terminated,” he said.
“But despite this project stalling and having negative publicity, an executive order was issued and a second contractor was procured because there was no budget provision. The second contract came at a cost of Sh800 million. The National Treasury CS through Article 223 issued instructions to NIA to complete the remaining 5,000 acres,” he said.
The contractor, Irrico International, a Kenyan company, bid to complete the remaining work at Sh800 million.
He explained that even after the Cabinet secretary gave instructions to NIA to procure a contract worth around Sh700 million in the main 2021-2022 financial budget, Sh600 million was provided for but through an addendum, Sh400 million was cut and only Sh200 million was released.
Mbiuki called upon National Treasury CS Ukur Yatani to provide for the same in the forthcoming supplementary budget.
Image: ALPHONCE GARI
The Environment and Natural Resources Committee chairman said they expect a supplementary budget to be done in October. He promised to push for the funds to be allocated to the flagship project crucial for President Uhuru Kenyatta's legacy.
He said since this is the final term ahead of elections, the budget would be done early next year. Mbiuki promised to hold talks with the budget committee to ensure the funds are made available to prevent the project from stalling.
“As the committee which oversees matters to do with irrigation, we want to make a commitment that we will continue lobbying and we will engage the budget committee to then be able to engage the National Treasury to ensure that the remaining Sh400 million is provided for in order to ensure that this project does not stall again,” the Maara MP said.
NIA chief executive officer Gitonga Mugambi said currently, production and trials of various crops including maize bananas, mangoes, cotton, cashew nuts, citrus, coconut and pineapples are ongoing.
“The trials are meant to provide data on the performance of different crops to be shared to private players once the farm is opened to investors. This will help them invest wisely based on existing data from the trials,” he said.