The National Treasury has slashed cash for road construction by Sh11.7 billion in its latest budgetary review for the current fiscal year, citing below target revenue collection.
A new mini budget submitted by Treasury Cabinet Secretary (CS) John Mbadi shows the allocation for road developments has been chopped to Sh124.6 billion from Sh136.4 billion, being an 8.6 percent cut.
The changes come days to the end of the financial year which the Treasury had said was necessitated by a shortfall in revenue collections but which saw spending increase.
Total allocation to the department of roads was revised to Sh196.6 billion from Sh208.4 billion with the revenue expenditure reduced by Sh70 million.
“The Approved Estimates have been revised from Sh208.4 billion to Sh196.6 billion under Supplementary Estimates number three. This consists of Sh72.0 billion and Sh124.6 billion for the Current and Capital expenditures respectively, reflecting a net decrease of Sh11.8 billion mainly on account of rationalisation of the Capital expenditures,” reads the supplementary budget.
Among the projects hit by the funding cuts include the 85 kilometre Biretwo - Arror – Chesongoch road whose Sh415 million allocation was withdrawn in full, Kitale- Morpus road, whose funding was cut by Sh500 million and the Mombasa Port Area Development Project (Sh1.5 billion).
Others include the Gilgil-Machinery road whose allocation was slashed by Sh107 million, Molo–Olenguruone (Sh55.8 million) and the Thika- Magumu road (Sh105 million).
Funding for roads earmarked for construction using the low volume seal roads technology was also reduced by more than Sh1.5 billion.
The technology, introduced by the former President Uhuru Kenyatta in 2014 for use on roads with low vehicular traffic volumes, had previously been opposed by the current regime before it was embraced and received budgetary allocations in excess of Sh25 billion.
Spending on infrastructure development such as roads is usually viewed as a stimulus to the economy due to its trigger down effect.
There are some projects which received additional funding indicating they could be progressing at a faster rate than earlier projected.
The Treasury increased allocation for the Horn of Africa Gateway Development Project by Sh408 million. The project funded by the government and the World Bank, which also increased its allocation by Sh1 billion.
Other areas that saw increased allocation include Homa Bay County which received more than Sh320 million. Some of the roads to be constructed in the county include access to its new headquarters at Sh26 million and the realignment of the Homa Bay- Rongo road for Kabunde Airstrip expansion at Sh180 million.
Homabay County has seen increased infrastructure development under the Broad Based government that has looped leaders from the area into the Kenya Kwanza administration.
