Government reduces project funding to free money for salaries and operations

President Uhuru Kenyatta’s legacy projects are in trouble after a grave cash crunch hit the government – barely 20 months to end of this tenure.

According to reports, the government faces a cash-flow crisis forcing the Jubilee administration to drastically reduce funding for mega development and other projects to free up cash for salaries and other expenses.

A new report by Controller of Budget Margaret Nyakang'o on exchequer released by the National Treasury reveals development projects have been hit hard as the financial crisis ravages the government.

The report shows  the National Treasury has released only Sh140.57 billion to Ministries, Departments and Agencies (MDAs) for development against an annual allocation of Sh387.92 billion as of Monday this week.

This translates to about 36 per cent of the total allocation, with only five months to the end of the financial year.

Normally, the Treasury should have released as much as 50 per cent of the annual budget by the end of the first half of the financial year on December 31, 2020.

However, the report indicates some of the President’s Big Four projects -  mostly domiciled in the giant Transport, Housing,  Infrastructure and Public Works Ministry headed by CS James Macharia - have received full funding.

For instance, Transport Department has received Sh12.46 billion out of the Sh11.27 billion it was allocated, surpassing the annual allocation by 13 per cent.

Housing has received Sh12.13 billion out of total budget of Sh14.94 billion.

The Ministry of Health charged with overseeing the rollout of Universal Health Coverage  has only received Sh6.05 billion out of Sh43.59 billion since July last year.