The Star (Nairobi)

12 November 2012

Kenya: Key Sectors Need a Sh1.05 Trillion Budget By 2016, Says Treasury

The Energy, Infrastructure and Information Communications Technology Sector will need almost three times the development annual budget allocation from next year.

According to the Governments medium-term sector reports the key sectors requires a total of Sh1.05 trillion in the next three years to meet the economy's development goals.

The sector which consists of roads, energy, ICT, local governments among others needs funding to the tune of Sh361.9billion in 2013/14, Sh373.5billion in 2014/15 and Sh319.7billion in 2015/16 financial year.

The total approved development expenditure for the sector in 2011/12 was Sh128.69 billion up from Sh106.8 billion in the previous year.

However Treasury notes that the trends in expenditure indicate that there has been a general underutilization of development expenditure.

"The underutilisation is attributed to: procurement challenges particularly donor funded projects; inadequate counterpart funding which affects the expenditure on the donor component; and delayed/inadequate exchequer releases and disbursement of funds from development partners,"read the report.

Finance minister Njeru Githae is set to officially launch the MTEF budget report today and present the supplementary budget today. The other sector that need a boost is the agricultural and rural development whose total resource requirement in 2013/14 is Sh103,690 billion. This is over 100 per cent increase from the allocated funds in 2012/13 of Sh51,099 billion.

The sector directly contributes 24.5 per cent of the Gross Domestic Product valued at Sh741 billion and another 27 percent to GDP through linkages with manufacturing, distribution and other service related sectors and boost exports.

Environment water and housing requires Sh114.8billion in the 2013/14 period to boost output. However, the Sector's ceiling allocation has been put at Sh57.9billion

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