Connect with us

Hi, what are you looking for?

Cyprian Is Nyakundi

Business

World Bank wants Kibaki era projects cancelled

The World Bank wants a cancellation of incomplete infrastructure projects worth Sh1.1 trillion initiated during the Kibaki’s tenure as the head of state.  Premature termination of the projects may expose Kenya to legal suits.

The government has 3,972 ongoing projects, most of which are stalled, delayed or incomplete.

Kenya set aside Sh516 billion for all development projectsm but the amount cannot fund the 522 dormant plans that are increasingly piling up pending bills.

“Dormant projects with very low completion rates and high outstanding costs may be considered for rationalisation provided that a requisite assessment of contract, legal and financial implications is undertaken,” WB saID.

They argue that 40% of the projects became irrellevant when the country changed its laws in 2010 and adopted devolution. County governments failed to allocate funds for 195 irrigation projects initiated in the second term of the former president, Mwai Kibaki.

Data from the Kenya Public Expenditure Review published by the World Bank show that 53 projects are dormant because of varying factors including litigation, wayleave challenges, acquisition of land and hitches in donor funding.

The Treasury’s move to cut expenditure have also resulted in the stalled projects.

The Northern Corridor which is the country’s strategic transit route with a mix of rail, road, pipeline, ports and inland waterways constitutes 72% of the value of dormant projects of which 22 are short of Sh798 billion to finish.

Kenya wants to secure the Northern Corridor ahead of Tanzania’s Central Corridor and therefore formed a Coalition of the Willing with Uganda and Rwanda to implement projects that require intensive capital.

The call comes at the time when counties are staring at cash crisis after the Senate failed to strike a deal on the formula for sharing Sh316.5 billion.

The impasse means counties have a serious cash crunch that may push crucial projects to a complete halt.

This is a headache to President Uhuru Kenyatta too because  formula is needed to guide the enactment of the yet to be approved County Allocation of Revenue (CAR) Bill, 2020.

If passed it will provide the formula for sharing of revenue raised nationally between the two levels of government.

 


Would you like to get published on this Popular Blog? You can now email Cyprian Nyakundi any breaking news, Exposes, story ideas, human interest articles or interesting videos on: [email protected] Videos and pictures can be sent to +254 710 280 973 on WhatsApp, Signal and Telegram.


Comments

comments

 
Click to comment

Facebook

You May Also Like

News

Remember Josephine Mwandoe, the alleged mistress to CFAO Motors Kenya CEO Arvinder Reel Singh? Earlier in April, this blog highlighted how the curvaceous and...

News

To start with, we congratulate Ngina Kenyatta on her wedding to Alex Mwai, son of the Karen Club General Manager Mr Sam Mwai. Many...

News

An outraged netizen has urged city residents to avoid seeking services at Super Shine Detailing Center – located in Westlands, Nairobi – after its...

Featured

A serious glitch in the MPESA transaction is threatening the economy and stability of the country. Though not new, this is the only time...

Copyright © 2021 Cyprian Is Nyakundi.

%d bloggers like this: