The Principal Secretary for the State Department for Housing has warned of a possible project stall if funds are not allocated promptly.
In documents presented before the Committee, Mr. Charles Hinga noted that under the proposed FY 2025/2026 Supplementary Budget I, a reduction of KES 800 million has been made to the programme’s donor funding allocation, lowering the total budget from KES 13.341 billion to KES 12.541 billion.
He further noted that this decrease will significantly affect programme implementation.
In his presentation, PS Hinga stated that the government currently has 1,700 ongoing housing projects. He also highlighted a personnel shortage, noting that some officers are working up to three shifts due to understaffing.
The Committee, chaired by Vice Chairperson Hon. Mugambi Rindikiri, sought to know whether the Department had anticipated the funding shortfall or if it was a case of poor planning, and why more staff had not been recruited.
In response, the PS confirmed that the Department had anticipated the funding inadequacy, having already utilized 80 per cent of the allocated budget.
He added that although the Department had saved some funds in Treasury Bills, the National Treasury has declined to allow access to the funds.
On staffing, the PS stated that a request for additional personnel had been submitted but was not approved.
The Committee advised that it will engage the Cabinet Secretary for the National Treasury and Economic Planning to seek further clarification on the matter.
The Committee also met the Principal Secretary for the State Department for Public Works, Mr. Joel Arumonyang, who appeared to defend the Department’s budget.
The PS noted that the department lacks adequate motor vehicles, which are crucial for fulfilling its mandate.
The Committee acknowledged that the State Department is underfunded and committed to exploring ways to address the funding gaps.
By Anthony Solly
