This archive report was first published on 18 August 2019.
Kenya's development projects are facing a cash flow crisis, with only one ministry receiving funds in July, the first month of the financial year.
According to the Kenya Gazette, the Treasury released Sh1.6 billion to the State Department of Energy for its infrastructure projects.
However, the remaining 54 government ministries, departments, and agencies (MDAs) had not spent cash on projects, despite a warning by President Uhuru Kenyatta on the sluggish absorption of the development budget.
Parliament had approved a budget of Sh422.3 billion for project spending on roads, power plants, water infrastructure, and electricity transmission.
The delayed release of funds for projects comes at a time when workers at the counties are staging a go-slow, disrupting operations due to failure to service their July dues.
The 47 devolved units have not received a coin from the Treasury following a stalemate over the Division of Revenue Bill.
Spending on development projects is crucial for economic growth, as it boosts auxiliary sectors like cement makers, steel dealers, and firms dealing in heavy equipment.
