Transport and Infrastructure Committee considers Budget Policy Statement of State Departments under its purview

Transport and Infrastructure Committee considers Budget Policy Statement of State Departments under its purview

𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐬𝐬𝐞𝐦𝐛𝐥𝐲,
𝐓𝐮𝐞𝐬𝐝𝐚𝐲, 𝐅𝐞𝐛𝐫𝐮𝐚𝐫𝐲 𝟐𝟓,𝟐𝟎𝟐𝟓

The Departmental committee on Transport and Infrastructure chaired by Hon. George Kariuki met with the Ministry of Roads and Transport, led by Cabinet Secretary Hon. Davis Chirchir on the 2025 Budget Policy Statement themed "Consolidating Gains Under Bottom-Up Economic Transformation Agenda for inclusive Green Growth."

In his presentation CS Chirchir says that the state department presented to the energy, infrastructure and ICT sector a budget resource requirements of 460.6B for 2025/26 and only received an allocation of Ksh 198.9B in the 2025 BPS resulting into a budget shortfall of Kshs 261.7B.

He said that the ministry has a net GOK resource requirement of Ksh 287B for 2025/26 resulting to a shortfall of Ksh 226.5B. 

Chirchir says that the ministry has an outstanding portfolio with a pending bill component of Kshs175B as at 31st December 2024 made up of certified works, land compensation and relocation of services. The pending bills are mainly because of inadequate budget provisions over the years Viz-a-Viz the portfolio of projects.

Adding that the subsector Continues to experience an increasing financing gap. Stating that the GOK shortfall in funding will negatively affect road projects implementation resulting into delayed project completion, interest and other claims, abandoned projects, expensive projects and reduced confidence in government in honoring it's obligations among other negative issues.

CS Chirchir also informed the legislators that Cabinet had approved the securitization of the additional Fuel levy of Ksh 7 per litre through a bond issuance approved in July 2024 . This he says translates to approximately Kshs 32B per year and 175B by 30th June 2025.

The amount raised he says will mainly be utilized to settle pending bills and the current budget will be utilized to settle current works on contracted projects.

Hon. Chirchir called on members to support the noble idea that will unlock the stalling of road projects, boost employment opportunities and invigorate the economy.

in regards to the State Department for Transport, the CS says that despite the country's fiscal challenges, the state Department has continued implementing the government agenda .

The PS Mohammed Dagaar explained that the FY 2025/26 resource requirements is Kshs 99.3B however proposed FY 2025/26 budget allocation bases on the BPS is Kshs 66.4B causing a shortfall of Ksh 32.9B

PS Dagaar says that the shortfall will affect various projects including Expansion and modernisation of airstrip to connect various parts of the country and enhance Kenya's connectivity and competitiveness in the region, implementation of the Kenya Urban Mobility Improvement project , construction of the Riruta-Lenana-Ngong Railway line, Construction of phase I of the Nairobi Railway City (NRC) project, completion of the new MGR link connecting Mombasa SGR terminus to Mombasa MGR station, along with construction of a railway bridge across the Makupa Causeway, the acquisition of a new ferry for Lake Victoria, completion of construction of the control tower at Kisumu Airport and the Completion of rehabilitation of terminal building and apron at Ukunda Airport.

The committee also met with the PS Geoffrey Kaithuko for the state department of fishing and Maritime.

In his presentation PS Kaituko informed members that the state department through Bandari Maritime Academy was implementing the survival training and certification centre project which was projected to take three years. 

In the current year FY2024/25 it had an allocation of Kshs 574M at the printed Estimates. However it was revised down to zero in supplementary 1 budget. At the resource bidding during the sector working groups, it secured an allocation of 700M for the project for FY2025/26. However, the BPS shows that National treasury reduced it to 270M.

The PS has asked the committee to intervene so that the amount be reinstated to 700M as works are ongoing and there is a pending certificate. Saying this will help the state department minimise the risk of litigation and cost escalation.

The PS also informed members that the spatial plan project had also secured 100M but has since been revised to 30M and budget cuts at the headquarters have significantly affected operations making it hard for it to carry out its mandate.

PS Geoffrey says that budget constraints have hindered the department’s ability to support ongoing maritime projects. Without the proper funding, job creation opportunities for youth in the maritime sector have been significantly curtailed, limiting their chances of gaining employment through international partnership agreement.

Inadequate training facilities and infrastructure for maritime education and training institutions limiting the number of courses offered locally. Also the lack of sea time training to Kenyan qualified cadets due to lack of training ship and this denies alot of youth job opportunities in the global market.

The PS has called on Members of Parl for collaboration and support to effectively carry out its mandate.