The Star ­ Monday
Date: 18.05.2015
Page 39
Article size: 192 cm2
ColumnCM: 42.66
AVE: 75093.33
Funds uptake rate up
this year ­ report
BY CONSTANT MUNDA
DEVELOPMENT funds
ed the construction of stand­
spending has significantly
improved this financial year,
ard gauge railway to add at
least 1.5 per cent to the gross
domestic product on comple­
latest net disbursements data
from the Exchequer show, a
boost to economic growth
forecast at 6.9 per cent this
calender year.
State ministries, depart­
ments and agencies had by
last month spent Sh218.63
tion in 2017.
billion out of the Sh320.89
billion allocated to various
21 days from the previous 30
days.
The tender prequalification
period was also reduced to
seven days from two weeks
in a bid to spur expenditure
on development projects.
"Since the budget state­
ment is presented on April
development projects in the
financial year 2014/15, trans­
lating to 68.13 per cent ab­
sorption rate.
This is still below the Na­
tional Treasury's target of 80
per cent, two months to the
end of the financial year next
month.
It's however an indication
the country is on course to a
record spend in development
budget that has for years re­
mained below 60 per cent,
partly blamed on stubborn
bureaucracies in public pro­
curement processes.
A total of Shl02.26 billion
was still lying at the Excheq­
uer by April 30, Treasury
Cabinet secretary Henry Rot­
ich said in the periodic State­
Rotich had in January
2014 slashed the period for
preparing national tenders to
a minimum of 14 days from
21 days, while that for inter­
national tenders was cut to
30, the ministries and all
spending agencies should
be preparing a procurement
plan between April and June
so that when the budget is
approved by June 30, they
should be ready to go(start
procurement process ) on the
first day of July," he had said
in an interview ahead of the
budget for the current fiscal
year. "They should not start
procuring way in the middle
of the financial year (Janu­
ary)."
Overall, the national gov­
Net Exchequer Issues pub­ ernment had withdrawn
lished in the Kenya Gazette Shi.11 trillion out of the
budgeted Shi.36 trillion, the
on Friday.
This means Sh73.04 billion net Exchequer issues show,
was withdrwan in the three an absorption rate of 81.61
months to April as the Ex­
chequer had Shl75.3 billion
at the end of January.
"The budget execution
this year will be better than
last year looking at the offi­
ment of Actual Revenue and
cial data because we always
spend more in the second
halfQanuary to June)," said
Jason Lakin, country man­
ager for International Budget
Partnership, a budget policy
and analysis think tank, in an
interview last Wednesday
"While we should be
pretty happy with improved
expenditure, we should also
ask ourselves 'is development
improving enough in MDAs
that are dealing with most of
these programmes?"'
The improved implementa­
tion of development projects
especially in infrastructure is
a key enabler to growth in
national wealth. The Treas­
ury has, for example, project­
POLICYMAKER: Treasury CS Henry Rotich slashed the period for preparing tenders.
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