Economy

Kibaki projects hit by shortage of funds

kibs

President Kibaki (right) with PM Raila Odinga (centre) and Transport minister Amos Kimunya at a past forum on the Lamu port project. Projects started under Mr Kibaki could stall due to inadequate funding. FILE

Key infrastructure projects started under retired president Mwai Kibaki could stall due to inadequate funding, Parliament was told on Thursday.

The principal secretary at Ministry of Planning, Peter Magiti, on Thursday told the National Assembly’s Budget and Appropriations Committee that the Treasury’s allocation of Sh172.6 billion to the ministry is inadequate.

He said that priority programmes such as Lapsset Corridor Development Authority, National Youth Council and the National Drought Management Authority have also not been adequately funded.

The Lapsset Authority is mandated to oversee the implementation of transport and infrastructure projects.

The committee was listening to views from various sectors on the 2014/15 Budget. He said the Sh81.5 billion allocated for recurrent expenditure and Sh91.2 billion for development in the ministry is inadequate.

READ: Treasury denies major projects cash

“The sector’s total resource requirement is Sh246.1 billion compared to an allocation of Sh172.6 billion. This represents a shortfall of Sh73.5 billion which is equivalent to Sh29.92 per cent,” Mr Magiti told the committee chaired by Mbeere South MP Mutava Musyimi.

He said the resource gap under recurrent estimates by sub-sector has a variance of Sh48.9 billion between recurrent resource requirement and resource allocation in the financial year 2014/15 for the sector.

Forex volatility

Mr Magiti who chairs the Public Administration and International Relations Sector comprising 11 key ministries and institutions said the implementation of the Constitution, resource constraints, unsustainable wage and pension bill as well as procurement process and foreign exchange volatility were some of the challenges.

The sector consists of the executive office of the President, Devolution and Planning, Foreign Affairs and International Trade, National Treasury, Parliamentary Service Commission, Commission on Revenue Allocation, Public Service Commission, Salaries and Remuneration Commission, Auditor General, Controller of Budget and the Commission on Administrative Justice.

Mr Magiti said more resources and human and institutional capacity are still required to ensure successful implementation of the Constitution.

“Over the years, the mandate of the ministry has continued to expand without corresponding increase in the resource envelope.”

This coupled with implementation of austerity measures and non-issuance of expected exchequer, has affected implementation of sector priority programmes and sometimes leads to creation of pending bills,” he told the committee.