- Land compensation and relocation of services accounts for approximately 25 per cent of the pending bills.
- The PS noted that abandoned and expensive projects have reduced confidence in Government contracts.
Image: JACKTONE LAWI
Road agencies have pending bills totalling Sh155.9 billion as of September 30, 2023, MPs have learnt.
Roads Principal Secretary Joseph Mbugua told Members of the National Assembly that Kenya National Highways Authority has the highest amount of pending bills amounting to Sh82.5 billion.
He said Kenya Urban Roads Authority and Kenya Rural Roads Authority have pending bills amounting to Sh14.1 billion and Sh59.2 billion respectively.
“Land compensation and relocation of services account for approximately 25 per cent (39.4 billion) of the pending bills as of September 30, 2023,” he said.
Mbugua spoke when he appeared before the Departmental Committee on Transport and Infrastructure for consideration of Supplementary Estimates No.1 for Financial Year 2023/24.
“The pending bills have resulted in slowed progress of works resulting into delayed project completion, interest and other claims,” he added.
The PS noted that abandoned and expensive projects have reduced confidence in government contracts.
“Despite the negative effects of pending bills, I would like to state that the said bills have a concurrent asset in the form of certified works and completed road sections. These road sections, though not paid for by the government have a positive impact on the economy,” he stated.
The State Department has received an allocation of Sh230.1 billion in Supplementary Estimates No.1 for Financial Year 2023/24 from the Printed Budget of Sh250.8 billion resulting in Sh20.7 billion reduction.
Mbugua said the State Department received Recurrent Exchequer amounting to Sh293,582,137 for payment of salaries only (July, August and September).
He noted that the State Department has a pending Exchequer request at the National Treasury amounting to approximately Sh15 billion.
“The State Department underachieved its targets on construction and rehabilitation of roads and bridges sub programmes due slowed progress of works occasioned by budget insufficiency, delayed exchequer releases and accumulation of pending bills,” he stated.
Mbugua said the proposed Budget reduction will result in consequences among them continued accumulation of pending bills and resultant nugatory costs of interest charges and other claims.
He added that it would also result in delayed project Implementation leading to expensive programmes than originally conceived owing to the passage of time.