Key electricity projects may face delays following the National Treasury’s proposed budget cuts to the State Department for Energy, according to a report by a House committee.
The Departmental Committee on Energy’s Report on the Financial Year 2024/2025 Supplementary Estimates No. I highlighted a significant reduction in the department’s budget by Sh18.55 billion.
This cut includes a decrease of Sh12.32 million for recurrent expenditure and a substantial reduction of Sh18.53 billion for development expenditure, as noted by the committee chaired by Mwala MP Vincent Musyoka Musau.
“The State Department has experienced significant budget cuts affecting development expenditures to the tune of Sh18.53 billion which is a reduction of 31 per cent compared to the initial FY 2024/25 annual estimates,” the report said.
The committee said projects affected by the cuts include the Last Mile Connectivity for Constituencies and Other Interventions project, the Rural Electrification Schemes project, and the Street Lighting Project.
“There are critical projects carried out by Kenya Electricity Transmission Company that have suffered budget cuts although they are almost complete for commissioning, which includes the Nanyuki-Isiolo-Meru project, Sondu-Homabay Ndhiwa Awendo project, Nairobi 220kv Ring project, Olkaria Lessos project, Power transmission system improvement project, and Narok-Bomet project,” the report further noted.
The report also notes the introduction of a new project, the Connectivity to Leather Industrial Park – Kenanie project, which is financed by the exchequer with an allocation of Sh450 million. The goal is to achieve 100 percent completion by the end of the financial year.
The committee recommended several budget adjustments:
– Increase the allocation for the electrification of public facilities by Sh400 million.
– Increase the allocation for the Street Lighting project by Sh61 million.
– Increase the allocation for the Bogoria Silali Geothermal Project by Sh200 million.
– Increase the allocation for the installation of transformers in constituencies by Sh150 million.
– Increase the allocation for the Menengai Geothermal Development project by Sh100 million.
Additionally, the committee proposed reductions:
– Decrease the allocation for the Bogoria Silali Geothermal Project by Sh200 million.
– Reduce the allocation for the Suswa Geothermal Project by Sh300 million.
– Cut the allocation for the Expansion of Energycentres by Sh211 million.
