16 January 2014

Kenya: State Underfunds Flagship Sectors in 2014 Allocation

KEY energy, infrastructure and ICT projects have been underfunded to the tune of Sh160.4 billion in the next budget to be unveiled in June, Treasury estimates show.

A report on the three crucial sectors of the economy released yesterday shows that while key targeted projects require up to Sh356.5 billion for development expenditure and another Sh45.8 billion for recurrent operations, they will be allocated Sh200.3 billion for development and Sh41.6 billion for recurrent in the financial year 2014/15.

This is Sh160.4 billion less the amount that would have seen the sectors achieve their objectives and detailed outputs.

The sectors will require Sh346.7 billion for development projects in financial year 2015/16, Sh339 billion for 2016/17 and an additional Sh47.8 billion and Sh49.6 billion recurrent funding for the two financial years respectively.

The energy, infrastructure and ICT sector consist of energy and petroleum, transport and infrastructure and information communications and technology subsectors. These sectors have been recognised in Vision 2030 as key enablers for sustained economic growth.

The report has given the key priority projects that are lined up for implementation between 2014 July and 2017 July. In the energy and petroleum sub sector, its is expected that 5,888Km of electricity transmission lines will be constructed abd 600,000 new consumers of electricity to connected with power. It is also targeted that 450MW of power will be generated from the Menengai geothermal fields in Nakuru and another 150MW from Suswa geothermal fields.

In the period, it is estimated that 18,214 rural electrification projects will be undertaken including connecting 205 secondary schools, 12,124 primary schools, 2,706 trading centres and 3,179 health and tea buying centres.

Also lined up for implementation is connecting 3,000 public primary schools in the government laptop project with solar energy as well as another 500 public institutions with solar power.

In the petroleum exploration and distribution, projects to be undertaken include creation and gazettement of new petroleum blocks and the establishment of a national petroleum data centre. The National Oil Corporation is also going to be restructured during the period. A new 14 inch 450km Mombasa-Nairobi pipeline is targeted to be built as well as a 6 inch 121km parallel oil pipeline from Sinendet to Kisumu .

The government also aims to create a 90-day national strategic oil reserves among other key projects.

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