EDITORIAL: Development cash must be released on time

The Jubilee administration has consistently stated its intention of leading Kenyans to a high-quality life as envisaged under Vision 2030. That goal implies rapid expansion of the national cake over the next 12 years. A government that wants to improve the lot of its people takes concrete steps to stimulate private sector growth and job creation.

In short, the government would be seen as walking its talk if it fast-tracked investments in social and economic infrastructure through increased absorption of the development budget.

That, sadly, has not been happening. Instead, annual financial reports are replete with cases of poor absorption of development funds by the various ministries, departments and agencies (MDAs).

This unfortunate trend – which has spread to counties - continues in the financial year that just began in July. Figures published in the Kenya Gazette last week show that only one agency -- State Department of Energy -- out of the 54 MDAs received development cash in the first month of the 2019/20 financial year.

It should be a cause for worry that only Sh1.6 billion was released for development given that Parliament approved a Budget of Sh422.3 billion for projects ranging from roads, power plants and water to electricity transmission over the 12 months to June next year.

Investing in infrastructure cuts the cost of doing business and jolts the private sector into releasing capital for expansion, thereby expanding job opportunities.

But a direct benefit is tied to the resulting multiplier effect since the government is always the biggest buyer of goods and services. The contractors working on public projects hire workers and also inject cash into auxiliary sectors like cement makers, steel dealers and firms dealing in heavy equipment and logistics.

True, stringent public procurement laws and strict conditions set by donors may slow down execution of development plans but that sad state of affairs can’t be Kenya’s story every financial year. The government must take deliberate steps to ensure that development cash is released on time and that MDA officials are punished in case of unnecessary delays in rolling out or completing projects.