President William Ruto’s administration has been compelled to halt several key projects, some integral to his legacy plans, attributing this decision to the failure of the tax legislation.
Among the affected initiatives is Kenya Kwanza’s ambitious railway city project. According to budget estimates, Ruto’s administration has abandoned various projects, including the modernization of the Government Press, originally budgeted at Sh700 million for infrastructure and furnishings.
Additionally, general maintenance and refurbishment works at key offices such as Harambee House Annex and the official residence in Karen have been shelved.
Plans for renovating buildings at the former PC’s office in Mombasa, utilized as Deputy President Rigathi Gachagua’s official Coast region office, have also been canceled. Significant cuts have been made across the board, including a withdrawal of Sh900 million allocated for general maintenance at State House Nairobi.
Similarly, renovation plans for State House Mombasa and State House Nakuru, each budgeted at Sh240 million, have been scrapped, resulting in total cuts amounting to Sh1.6 billion.
Moreover, funding for critical healthcare infrastructure like the Magereza Level 4 Referral Hospital, initially budgeted at Sh451 million, has been reduced pending parliamentary revisions.
The planned upgrade of national forensic facilities, originally set at Sh918 million, has been suspended due to the budget cuts. The construction of police stations and housing, totaling Sh1.8 billion, has also been significantly slashed. Additionally, Internal Security’s ambitious Sh6.5 billion modernization plan for the National Police Service has been put on hold.
Foreign missions grappling with rent and space shortages may face prolonged challenges, as budgets for the renovation of government properties in New York (Sh800 million) and the acquisition of a chancery in London (Sh900 million) have been withdrawn. Furthermore, the Treasury has cut Sh1.6 billion earmarked for the construction of 52 Technical Training Institutes (TTIs) under the Bottom-Up Economic Transformation Agenda.
The recent budget cuts totaling Sh3.1 billion have had widespread impacts on various vocational training institutions, affecting both new and ongoing works. University projects, particularly those at the University of Nairobi, have also been hit with a reduction of Sh3.2 billion.
Plans to improve infrastructure in secondary schools, allocated Sh1.7 billion for this financial year, have faced setbacks. Similarly, projects aimed at enhancing Junior Secondary School infrastructure, initially budgeted at Sh2.7 billion, have been affected, along with efforts to improve primary school infrastructure.
Under railway upgrade plans, funding has been withdrawn for the rehabilitation and renovation of Limuru Railway Station, originally allocated Sh200 million. The Nairobi Bus Rapid Transport Project has seen its budget cut by Sh418 million, slowing down progress. Additionally, budgets for the Riruta-Lenana-Ngong railway line (Sh415 million), acquisition of ferries for Lake Victoria (Sh200 million), and works at Kisumu Marine School (Sh163 million) have been removed. Upgrades to several meter gauge railway lines, including Leisuru-Kitale, Gilgil-Nyahururu, and Nairobi-Nanyuki, have also experienced budget reductions.
The cuts have impacted various development projects across the country, including the National Slum Upgrading projects (Sh1 billion), ESP markets (Sh536 million), and Gikomba market (Sh209 million). Additionally affected are Chaka, Nakuru multipurpose, and Homa Bay fish markets. Construction projects for regional, county, and subcounty offices, as well as refurbishment plans for 290 subcounty offices, have also been affected by the slashed budgets. The budget allocation of Sh290 million for preparatory works at the Ewaso Ng’iro Leather Factory has been removed.
Furthermore, the Treasury has withdrawn budgets for the hire of medical equipment for 98 hospitals under the Medical Equipment Service, totaling Sh2.5 billion. Construction projects for tuition blocks and laboratories at KMTC, as well as the equipping of laboratories and classrooms, may face delays due to a reduction of Sh1.1 billion in their budgets.
Several road projects have been affected after funds allocated to them amounting to Sh14.1 billion were removed.
The most affected are roads classified as “critical emergency intervention” and were allocated Sh13.7 billion.
Access roads to Industrial Park facilities that had been provided Sh420 million also risk stalling, so is the construction of county headquarters, and water projects worth Sh3.7 billion.
