Parliament has cut Sh9.6 billion from the Finance Ministry’s budget, calling into question the operations of several infrastructure projects that President Uhuru Kenyatta placed on the record last year.
The Budget and Appropriations Committee (BAC) revised the Treasury’s budget from Sh167.84 billion to Sh155.17 billion for the year beginning in July. The deputies, however, gave the Treasury a token of 980 million shillings for the public share and 700 million shillings for a parking spot in Malaba which softened the blow.
The budget hole means that Treasury Cabinet Secretary Ukur Yatani will have a difficult time implementing various projects, including public ports, railways, and pipeline services that were transferred to his outlet under the umbrella of the Transport and Logistics Network of Kenya (KTLN).
“While the committee appreciates the need to locate certain key projects under seemingly high-performing ministries, there is concern that the biggest problem is the flow of finance in a timely manner,” said the BAC chaired by Kanini Kega in the report to Parliament. .
The cuts have focused on overall planning and support to the tune of Sh6 billion, public financial management (Sh4.9 billion), and the Lamu Port-South Sudan-Ethiopia-Transport Corridor project (Lapsset) (Sh600 millions).
“It is noted that in the next financial year, the National Treasury will become an implementing agency for projects such as the Dogo Kundu Special Economic Zone, Nairobi to Naivasha SGR, Mombasa Port Development Project, Lapsset and Kenya Mortgage Refinance. Company, ”the committee said.
“It will be difficult for the National Treasury to find the balance between being an implementer of public finances and being a sector implementer of these sector infrastructure projects.”
Last year, President Kenyatta issued an Executive Order bringing together the Kenyan Port Authority (KPA), the Kenya Railways Corporation (KRC) and the Kenya Oil Pipeline Company Limited (KPC) under the coordination of the Kenya Port Authority (KPA). Industrial and Commercial Development (ICDC) dependent on the Treasury.
The treasury is supposed to strengthen its internal capacity by ensuring the technical skills and competencies necessary to effectively oversee the management of the investment portfolio.
Some of the notable cuts included Sh1 billion for school infrastructure, Sh300 million from Nairobi Metropolitan Services, Sh500 million from Geothermal Development Company for power generation in Bogoria.
Parliamentarians gave the NG-CDF more resources an additional Sh3 billion before the 2022 elections.