Sh16 billion already spend under economic stimulus growth plan

Under the economic stimulus package 140 constituencies were to have fish ponds set up at a cost of about Sh1 billion to provide both employment and a rich source of food. Photo/JACOB OWITI

The economic stimulus programme has utilised 80 per cent of the funds allocated in the in 2009/10 Budget, which is the first phase meant to jump start the economy following the 2008 global economic downturn.

Out of Sh21 billion allocated to pull the country out of the economic abyss experienced in 2008 following post-election violence, Sh16 billion has been spend various projects.

Economic stimulus co-ordinator, Ms Ann Waiguru, said the Sh5 billion that remained in the first phase was recently disbursed to respective ministries undertaking the projects.

Another Sh26 billion voted in the current 2010/11 Budget, which is phase two of the programme, is yet to start being used, six months after the budget was read on June 10, 2010.

To be put in place

“The second phase is concentrated in the ASAL (arid and semi-arid) areas and involves projects such as the construction of slaughterhouses and boreholes, which require the necessary infrastructure to be put in place first,” Ms Waiguru said on Wednesday.

Experts say lack of infrastructure and trained personnel had delayed the implementation of many projects.

Finance minister Uhuru Kenyatta said the programme has played a significant role among others in contributing to return of the economy to a sustainable growth path with annual rate expected at between five and six per cent this year.

He said lessons learnt in the implementation of the projects would inform allocation of resources in the devolved government once the proposed 47 counties take-off.

“As the government embarked on the implementation of economic stimulus plan, it became clear that a robust implementation framework would be required so as to serve for implementation in subsequent years,” said Mr Kenyatta who is also a Deputy Prime Minister.

“This framework was also expected to provide lessons and best practices for fiscal decentralisation going forward.”

Mr Kenyatta spoke during the launch of a website and a Geographical Information System (GIS) mapping for monitoring and evaluation of the stimulus programme.

Announced at the height of the crisis when the global credit crunch saw the country’s exports and remittances from Kenyans shrinking, funds under the programme, which was designed to be high-intensive and high-impact, were channelled to projects with both short-and long-term benefits.

They included construction of new schools, heath centres and repairing and maintenance of rural access roads.

At least two primary schools in each constituency were to benefit from water harvesting facilities at a cost of Sh1.47 billion.

Each of the 210 constituencies was to have one secondary school upgraded to a ‘centre of excellence’ at a cost of Sh1.26 billion.

A mobile digital laboratory for secondary schools in a constituency was envisaged.

Each constituency was to employ 50 primary school teachers and 10 secondary school teachers on contract basis.

A tree fund for 20 schools in all the constituencies was also planned.

Jua kali sector was to benefit from sheds and purchase of equipment, while 180 wholesale and retail markets were to be constructed to benefit the farmers.

Another 140 constituencies were to have fish ponds set up at a cost of Sh1 billion.

Analysts say that challenges lie in maintenance of these projects after closure of the programme, with the government having hinted at gradual cutting of the stimulus package.