Key electricity projects are likely to stall after the National Treasury proposed budget cuts to the State Department for Energy, a report a House committee has warned.
The Departmental Committee on Energy Report on the Consideration of the Financial Year 2024/2025 Supplementary Estimates No. I noted that the allocation for the State Department for Energy has been reduced by Sh18.55 billion.
The cut comprises of a decrease of Sh12.32 million for recurrent expenditure and a reduction of Sh18.53 billion for development expenditure, the committee chaired by Mwala MP Vincent Musyoka Musau noted.
“The State Department has experienced significant budget cuts affecting development expenditures to the tune of Sh18.53 billion which is a reduction of 31 per cent compared to the initial FY 2024/25 annual estimates,” the report said.
The committee said projects affected by the cuts include the Last Mile Connectivity for Constituencies and Other Interventions project, the Rural Electrification Schemes project, and the Street Lighting Project.
“There are critical projects carried out by Kenya Electricity Transmission Company that have suffered budget cuts although they are almost complete for commissioning, which includes the Nanyuki-Isiolo-Meru project, Sondu-Homabay Ndhiwa Awendo project, Nairobi 220kv Ring project, Olkaria Lessos project, Power transmission system improvement project, and Narok-Bomet project,” the report further noted.
The document added that there is one new project which is the Connectivity to Leather Industrial Park - Kenanie project which is exchequer financed with an allocation of Sh450 million and aims at achieving 100 per cent completion by the end of the financial year.
The committee recommended an increase in the allocation for the electrification of public facilities by Sh400 million, an increase in the allocation for the Street Lighting project by Sh61 million, an increase in the allocation for the Bogoria Silali Geothermal Project by Sh200 million, an increase the allocation for the installation of transformers in the constituencies project by Sh150 million and an increase the allocation for the Menengai Geothermal Development project by Sh100 million.
The committee further recommended a reduction in the allocation for the Bogoria Silali Geothermal Project by Sh200 million.
It further asked the National Treasury to reduce the allocation for the Suswa Geothermal Project by Sh300 million and for the Expansion of Energycentres by Sh211 million.
