Experts query low budget uptake

Kenya is increasingly spending less money on development projects despite an increase in allocations every year.

The International Budget Partnership (IBP), an NGO that tracks the Budget, says even though Kenya had over the past three years increased the size of its development allocation, it was spending less and less of this amount.

For example, in the 2012/2013 Budget, the country utilised only 45 per cent of its development budget compared with 55 per cent in the 2011/12 period. This year, the picture looks even worse, with the country able to spend only 16 per cent of the Sh446 billion set aside for capital development.

“The figure might pick up in the period to June 2014… but Parliament needs to do more oversight so that we don’t keep allocating more money to ministries that are unable to clear their previous allocation,” said Mr Jason Larkin, a senior programme officer at the IBP.

Mr Larkin said the low spending could be partly due to procurement delays — including losing parties going to court — or could be a sign of poor planning.

“…it could mean either the ministries are overestimating their budget or the amount they expect to receive from donors,” said Mr Larkin.

The government has in the past cited slow release of funds by donors as one of the challenges facing execution of development projects.

Some donors insist on inspecting the amount of work done before they approve any further payments.

In projects that entail multiple payments, the inspections slows down the work, leading to low absorption of money.

Procurement has also been a challenge, though the ministry made changes to the Procurement Act reducing the time taken to award major tenders from between 6-12 months to less than 30 days.

In cases where companies involved protest or appeal to the Public Procurement Oversight Authority, or the commercial courts, the tender takes even longer, reducing the time for execution.