The government has reduced the Ministry of Roads and Transport’s outstanding projects portfolio from Sh900 billion to Sh650 billion to ensure completion of ongoing works, MPs have learnt.
Roads and Transport CS Kipchumba Murkomen told members of the Departmental Committee on Transport and Infrastructure the move also seeks to address outstanding bills.
“We are in the process of reducing the portfolio even further,” he told the committee on Tuesday.
He noted that the ministry has adopted a freeze on new projects, except viable ones which have been terminated and have to be re-advertised.
Murkomen added that the ministry has also terminated non-performing contracts and removed from the planning cycle, projects that had not been awarded.
He further said the ministry is also approaching development partners to offer budget support.
“Most of the outstanding portfolio is held by foreign companies. It is expected that a budget boost for these contracts will relieve the government portions they are holding for the benefit of local contractors,” he explained.
He added that the ministry is also pursuing the Private-Public Partnership (PPP) model for viable projects.
Murkomen appeared before the committee to discuss Supplementary Estimates No.1 for Financial Year 2023/24.
He noted that the government has been compelled to make a supplementary budget two months after the start of the new financial year owing to emerging priorities.
He said the priorities include the Housing Development Levy employer contributions and the Junior Secondary School start-up expenses.
“To enable the government to finance the emerging priorities, we have had to make sacrifices in several areas,” he stated.
The State Department for Roads has been allocated Sh230.1 billion in Supplementary Estimates No.1 for FY 2023/24 from the Printed Budget of Sh250.8 billion. This is a reduction of Sh20.750 billion.
The State Department for Transport’s approved budget for FY 2023/24 is Sh60.4 billion. This comprises Sh14.1 billion and Sh46.2 billion for recurrent and development expenditure, respectively.
“However, the budget has been revised to Sh58.1 billion, which consists of Sh14.4 billion and Sh43.7 billion for current and capital expenditure, respectively, reflecting a net change of Sh2.3 billion,” Murkomen noted.
He appealed to the Committee to support any other move by the Ministry that is for the benefit of contracted capital works.
