Transport and Roads Cabinet Secretary Kipchumba Murkomen has noted that the state will not start new infrastructural projects due to the budget shortfalls.
The CS reiterated this move when he appeared before the National Assembly plenary, adding that his docket has 800 stalled projects worth Sh763 billion as of February 28 subject to increased figures due to accrued interest.
Murkomen told MPs that they will not embark on any project unless it is funded by a congressional grant.
“As a result of the economic situation we have made a decision as Kenya Kwanza government to stop digging of the financial hole and as a result of that we are not standing any more projects unless it’s funded by development partners,” CS Murkomen said.
Moreover, the Ministry of Transport and Roads owes contractors a total of Sh145 billion pending bills for certified work on road constructions to local and foreign contractors with some money used for land acquisition due to budget deficit over previous financial years.
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“We are working with the National Treasury to allow us negotiate with some contractors who are willing to resume work through a plan that has seen the construction of a few road projects,” he stated.
Furthermore, the budget cuts fronted by President William Ruto’s administration are expected to delay major infrastructural projects as the states moves away from spending on areas considered of lower priority.
The International Monetary Fund (IMF) is pushing Kenya towards implementing a sound fiscal space by going down on expenditures while collecting more revenue, as part of the conditions for the continuity of the 38-month budgetary support program.
