This archive report was first published on 13 May 2020.
Lawmakers are facing scrutiny over the Sh1.8 billion allocated for the Nairobi-Nanyuki Metre Gauge Railway (MGR) line in the Supplementary Budget II, passed three weeks ago.
The Transport, Public Works and Housing Committee of the National Assembly failed to flag the allocation despite a warning from the Parliamentary Budget Office (PBO), which advised that the project was not part of the 2019/20 national budget.
According to the PBO, the Public Finance Management (PFM) Act prohibits introducing new programmes at the supplementary stage, and the MGR rehabilitation is a new project.
Interestingly, the amount has already been spent, yet it does not fall under the category of emergency projects.
Article 223 of the Constitution provides that the national government may spend money that has not been appropriated by Parliament, but it must seek approval within two months of the first withdrawal.
The committee has also been accused of colluding with the Ministry of Transport, Infrastructure and Housing to allocate money to new projects in the 2020/21 financial year, against a presidential directive.
