Infrastructure projects is set to get a lion’s share of the next financial year’s budget. With 15 months left to the end of his term, budget estimates before Parliament show that President Kenyatta is keen on completing megaprojects his administration initiated.
The National Treasury has proposed Sh 353billion to various ventures in the roads, transport, energy, ICT, housing and public works sectors. Roads account for the highest proportion of the infrastructure budget with the allocation of Sh1 82 billion for construction; rehabilitation and maintenance of roads and bridges.
For construction works, Sh 92billion will be used in line with the pledge for 10,000-km tarmac roads by 2022, and Sh 90billion for rehabilitation and maintenance. President Kenyatta seeks to spend Sh 53billion on various transport projects with the Nairobi-Naivasha Standard Gauge Railway set for the highest at Sh2 7.2 billion.
Revitalizing the railway sector
In a bid to further revitalize the railway sector, Sh2 billion has been proposed for the meter-gauge railway connecting to the SGR; Sh1.1 billion for the Nairobi-Nanyuki MGR line, and Sh700 million for the Nakuru-Kisumu line. The government has proposed Sh450 million for a railway station at Embakasi; Sh400 million for a railway station at Athi River and Sh450 million for the NSSF Mavoko station.
At least Sh7.5 billion has been proposed for the Mombasa Port, monies which are projected to be raised from donors, and Sh8.2 billion for the Dongo Kundu SEZ. Lapsset projects would be allocated Sh4.6 billion; Sh603 million for construction and expansion of airports as well as airstrips; Sh236 million for the Naivasha textile park; Sh149 million for maintenance of ferries and jetties; and Sh128 million for insurance of ferries plying the Likoni channel.
On Energy, Jubilee seeks to put significant resources to the national grid system at Sh50.1 billion; Sh11 billion for a geothermal generation; and Sh9 billion for rural electrification. Alternative energy technologies have been budgeted for Sh2.6 billion in the Sh74 billion energy budget; Sh810 million for nuclear energy projects; and Sh424 million for coal exploration and mining.
Boost in housing sector
Housing is also set for a major boost with the proposal for Sh8 billion initial capital for the Kenya Mortgage Refinancing Company. Also factored in the Sh21.7 billion housing and public works budget is Sh3.5 billion to operationalise the KMRC; and Sh1.2 billion for construction of affordable housing units.
The government has also provided Sh1 billion for construction of markets; Sh1 billion for maintenance of government pool houses; Sh750 million for police and prisons officers housing units; Sh700 million for the Nairobi BRT; and Sh111 million for footbridges.
Slum improvement projects have been apportioned Sh3.5 billion; Sh341 million for construction of county headquarters; and Sh46 million for completion of stalled government buildings. For ICT, the state intends to spend Sh23 billion, of which Sh12 billion will go to Konza infrastructure; Sh5.2 billion for Konza data centre; and Sh1.1 billion for Eldoret-Nadapal fibre-optic cable.
The government has also proposed Sh1 billion for the development of shared ICT services; Sh463 million for last-mile ICT connectivity; Sh1.2 billion for national fibre optic cable. For Water, Sh39 billion will be allocated to sewerage infrastructure; Sh10 billion for water storage and flood control; and Sh10.5 billion for irrigation and land reclamation.
