LEGACY HEADACHE

Mega projects face Sh122 billion funding cuts

Kenya Kwanza’s plan for a railway city is among projects affected in the face of sweeping budget reductions.

In Summary

•Estimates show that Internal Security’s plan for modernisation of the National Police Service at Sh6.5 billion is in abeyance.

•Works – new or ongoing - at various vocational training institutions have been affected by the Sh3.1 billion budget cut.

Artist's rendering of proposed Nairobi Railway City
RAILWAY CITY: Artist's rendering of proposed Nairobi Railway City
Image: HANDOUT

President William Ruto’s administration has been forced to abandon key projects, some of which were core to his legacy plan, citing the failed tax law.

Kenya Kwanza’s plan for a railway city is among projects affected in the face of the sweeping budget cuts.

Budget estimates show that Ruto’s team has dropped, among others, the planned modernisation of the Government Press, whose works and furniture were to cost Sh700 million.

General works at the Office of the Deputy President, which included sprucing up Harambee House Annex and the official residence at Karen, have also been dropped.

The refurbishment of buildings at the former PC's office Mombasa, which is DP Rigathi Gachagua’s official office in the Coast region, has also been dropped.

The National Treasury has removed a Sh900 million budget for general maintenance works at State House Nairobi.

State House Mombasa was to be renovated at Sh240 million, the same amount for State House Nakuru, in changes which saw works totalling Sh1.6 billion dropped.

The government has also cut budgets for the construction of Magereza Level 4 Referral Hospital, which had an initial budget of Sh451 million in the estimates MPs are set to revise.

The planned upgrade of national forensic facilities at Sh918 million has been suspended following the cuts.

Budgets for the construction of police stations and police housing, where a total of Sh1.8 billion projects have been affected, have also been slashed.

Estimates show that Internal Security’s plan for modernisation of the National Police Service at Sh6.5 billion is in abeyance.

Foreign missions that have been struggling with rent and lack of space may have to endure the situation a bit longer.

The budget for renovation of government properties in New York (Sh800 million) has been removed, so is that for the purchase of a chancery in London for Sh900 million.

Treasury has also slashed Sh1.6 billion that was set aside for the construction of 52 TTIs under the Bottom-Up Economic Transformation Agenda.

Works – new or ongoing - at various vocational training institutions, have been affected by the Sh3.1 billion budget cut.

University projects for Sh3.2 billion, especially at the University of Nairobi, have been affected as well.

Plans for improving secondary schools infrastructure at Sh1.7 billion this financial year have hit the headwinds.

Junior Secondary School infrastructure projects which had a budget of Sh2.7 billion have also been affected, as well as the improvement of primary school infrastructure.

Under the railway upgrade plans, there are no budgets for rehabilitation and renovation of Limuru Railway Station which was to be done at Sh200 million.

The Nairobi Bus Rapid Transport Project has also sustained a funding cut of Sh418 million, slowing the project further.

Also removed are budgets for the Riruta-Lenana-Ngong railway line at Sh415 million, the acquisition of ferries for Lake Victoria (Sh200 million), and works for Kisumu Marine School which had a Sh163 million budget.

Several meter gauge railway upgrades notably Leisuru-Kitale, Gilgil- Nyahururu,  and Nairobi-Nanyuki lines, have also suffered budget cuts.

The cuts have also affected the National Slum Upgrading projects which had Sh1 billion, ESP markets which had Sh536 million, as well as Gikomba market (Sh209 million).

Others affected by the budget cuts include Chaka, Nakuru multipurpose and Homa Bay fish markets.

Construction of regional, county and subcounty offices and refurbishment of 290 subcounty offices have also been affected by the slashed budgets.

The budget allocation of Sh290 million for preparatory works at Ewaso Ng'iro Leather Factory has also been removed.

Treasury has removed budgets for the hire of medical equipment for 98 hospitals for Sh2.5 billion under the Medical Equipment Service.

Construction of tuition blocks and laboratories at KMTC as well as equipping of laboratories and classrooms may also stall in the face of Sh1.1 billion budget cuts.

Several road projects have been affected after funds allocated to them amounting to Sh14.1 billion were removed.

The most affected are roads classified as “critical emergency intervention” and were allocated Sh13.7 billion.

Access roads to Industrial Park facilities that had been provided Sh420 million also risk stalling, so is the construction of county headquarters, and water projects worth Sh3.7 billion.

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