Infrastructure gets lion’s share of Budget at Kshs 357 billion.

The Government has allocated huge amounts of money to infrastructure and transport in the next financial year.In the financial year 2016/17, the State Department of Transport has been allocated Sh181.6 billion, with infrastructure receiving Sh176.1 billion, a total of Sh357.7 billion.This is an increase of close to Sh60 billion compared to Sh298 billion allocated to the Transport and Infrastructure Ministry in 2015/16.

According to Treasury, this is due to “revised donor commitments “and an extra Sh10 billion for the Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) project.Under the State Department of Infrastructure, the Road Transport Programme has a Sh42 billion increase meant to build low seal roads.

Roads have been allocated Sh62.8 billion for road construction (domestically financed) and Sh54.8 billion for foreign financed roads. A further allocation of Sh30 billion for low volume seal roads (Sh23.8 billion within the budget, Sh6.7billion through the Equalisation fund) 

The Standard Gauge Railway will receive Sh154 billion from donors, while Sh1.5 billion has been set aside for relocation of railway lines at Kibera and Mukuru in Nairobi.

On development of airports, Sh800 million is set for upgrading of Malindi, Isiolo and Lokichohio airports and Suneka Airstrip.

Another Sh500 million will be used for acquisition of two ferries for the Likoni Channel, while Sh5.5 billion is meant for the Mombasa Port Development Project. 

To promote agriculture and food security,the Strategic Grain Reserve; Improvement of animal genetic, national fish breeding and intensive culture technology development are the key priority areas.Besides these, the Government has heavily invested in irrigation over the past three years. 

Measures have also been taken to ensure that farmers have access to subsidized inputs such as fertiliser and seeds.

The State Department of Agriculture will receive Sh21.6 billion, Livestock’s Sh13.3 and Fisheries Sh4.2 billion which is an increase from financial year 2015/16 when the three departments combined received Sh46 Billion.

To boost Food Security and Agriculture, Sh12.2 billion has been allocated for on-going irrigation projects countrywide to transform agriculture from subsistence to commercial farming. 

This includes Sh3.2 billion for the Galana-Kulalu Irrigation Project, Sh3.2 billion for the Mwea Irrigation Project and Sh2.2 billion for the National Expanded Irrigation Programme. 

Other key allocations are Sh4.9 billion for inputs’ subsidy (fertiliser and seeds), Sh1.97 billion for Strategic Grain Reserves and Sh900 million for acquisition of Offshore Patrol Vessel.

A further Sh600 million has been allocated for the modernization of the Kenya Meat Commission, Sh200 million for the revival of Pyrethrum farming,Sh 600 million for livestock and Crop Insurance Scheme,Sh100 million for mechanisation of agriculture and Sh1 billion for the Crop Diversification Programme in Meru (miraa farmers)

In the Budget, the government has also allocated Sh500 million for the completion of prototype fresh produce markets under the Economic Stimulus Programme.

The National Assembly resolved that the National Treasury provides details on stimulus projects, both on-going and earmarked.

The Ministry of Water and Irrigation will receive Sh 62.3 billion, an increase from Sh39 billion in this financial year.

To enhance and sustain measures to control floods and harvest rain water, the following activities have been allocated funds as follows: 

Sh13.9 billion for construction of major dams, Sh12.6 billion for water supply and sanitation 

Sh19.5 billion for environmental protection, conservation and management 

Sh 3.9 billion for integrated regional development 

Sh100 million for aquaculture development andSh500 million for Prototype fresh Produce and wholesale markets.

 ‘Nexus’ is the Government Newsroom that communicates transformation



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