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Economy

Development spend hit Sh463bn in March on mega projects rise

Margaret Nyakango
Controller of Budget Margaret Nyakango. FILE PHOTO | NMG 

Development spending in nine months to March increased 17 percent compared to the same period a year earlier, pointing to increased public investments in infrastructure projects.

Controller of Budget (CoB) data shows Sh463.6 billion was channelled into capital projects during the review period, an increase of Sh68.3 billion compared to Sh395.3 billion a year earlier.

Increased spending on projects such as roads, water, power plants, real estate and electricity transmission lines spurs economic activities, helping create job opportunities and grow government revenue, mostly taxes.

“Development expenditure recorded growth in absolute amounts (Sh463.6 billion), compared to Sh395.3 billion recorded in a similar period FY 2019/20 signifying the government’s efforts to focus on development activities,” said CoB Margaret Nyakang’o in the report.

The State Department of Transport gobbled up Sh90.2 billion — nearly a fifth of the development spend during the nine months to March.

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It was followed by Infrastructure, which implements crucial projects such as roads where Sh85 billion was channelled in the review period.

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