CS: There is no money for new roads

“I am caught between a rock and a hard place”. That is what Transport Cabinet Secretary Kipchumba Murkomen told the National Assembly as he fought claims of skewed development of roads.

Murkomen blamed stalling of road projects on a thin allocation of cash against huge pending bills.
Appearing before MPs yesterday, the CS said he had to make the delicate decision of either reviving the projects or paying the pending bills.

Murkomen, who appeared to point fingers at MPs for the status quo, however, expressed optimism the projects could be revived after the Kenya Kwanza administration unlocks resources from development partners.

“In the current Financial Year, the GoK allocation for the State Department for Roads for is Sh76 billion against a request to the National Treasury of Sh250 billion.

The department started the Financial Year with a 70 per cent budget short fall. According to Murkomen, the money was reduced by Sh61 billion in the supplementary budget, out of which Sh46 billion has been allocated for road development and the remainder for maintenance.

“This is inadequate budget provision vis a vis the huge portfolio has led to the stalling of road projects across the country. Out of the portfolio, there is an outstanding Sh155 billion pending bills. The available Sh46 billion is less than the provision required to pay pending bills and develop new roads,” the CS said.

However, he said the Government is implementing a realistic plan to address the challenges of road financing.

He revealed that some of the measures being undertaken include drastically curtailing the uptake of new projects to focus on the completion of ongoing projects.
The government had also curtailed costly borrowing for roads and use of the overpriced infrastructure bonds.
“It is not all gloom in the roads sector. A lot is being done,” Murkomen said.

Partial disbursements

He disclosed that contractors who were able to keep working were being encouraged to do so, with partial disbursements being made available to them in accordance with the budget.

According to the CS, it is expected that over the next Financial Year 2024/25, the government, after clearing a lumpsum Eurobond payment, will be able to allocate significantly more funds for road development.

He added that the government was in discussion and had approached bilateral and multilateral development partners to access concessional funding to complete development roads.
“There are ongoing discussions that are in advanced stages and we are optimistic that this will aid our course in a big way,” Murkomen assured.

He said the delayed release of budgeted government exchequer also impacts the development of roads.
“It is expected that once the budget has been approved, the exchequer would optimally be released in tranches as the year progresses,” he noted.

He continued: “The delayed exchequer releases has also contributed to the stalling of road projects and interfered with project implementation planning by contractors.”

Regarding Kenya Rural Roads Authority (KERRA), the CS explained that the allocation of 32 per cent of the fuel levy which is earmarked for rural roads is distributed equally to the concerned constituencies.

Valuable instrument

The 10 per cent balance of fuel levy funds mentioned under Section 6 of the Kenya Roads Board Act is allocated to address various emergencies such as that caused by the current El Nino and security roads.

Constituency Road Committees, which have appointees of the NG-CDF and patronage of Honourable Members, are a valuable instrument in ensuring equity and optimal use of fuel levy at the constituency level.

“It is clear that the Roads Maintenance Levy is distributed equally. It, therefore, means that every MP here is superintending over Sh64 million which is equally distributed in all constituencies,” he said.

He was responding to a question by Kathiani MP Robert Mbui who wanted him to clarify the criteria utilised for allocating funds to the improvement of roads and construction of drainage structures through the Road Maintenance Levy Fund and Development Vote.

Mbui also wanted the CS to outline immediate steps the ministry was undertaking to ensure the equitable and fair allocation of funds for the improvement of roads and construction of drainage structures.