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Friday, March 7, 2025

Budget Cuts Delay Irrigation Projects, Pending Bills and Cost Overruns Loom

 


The Principal Secretary for Irrigation, CPA Ephantus Kimotho CBS, presented a list of capital projects affected by the Government of Kenya’s budget rationalization before the Departmental Committee on Blue Economy, Water, and Irrigation, revealing a Kshs. 1.5 billion shortfall. The budget cuts are expected to lead to delays in project completion, pending bills, and potential cost overruns.


During the presentation, PS Kimotho emphasized that despite the budgetary constraints, the outputs and performance targets for the State Department in the Financial Year 2024/25 will remain unchanged. However, he acknowledged that ongoing contracted capital works would continue as per contractual obligations, although the reduced budget allocation could result in slower progress and additional financial burdens.


Among the key projects under discussion was the Galana Kulalu Irrigation Development, a major initiative that has been closely watched for its progress. Hon. Bowen raised concerns regarding the terms of the contract with the two companies involved in the project and pressed for transparency. "As a committee, part of our mandate is to provide oversight. Currently, we are relying on the information you have provided regarding this contract and its terms. When can we expect you to present the contract to us?" Hon. Bowen inquired.


PS Kimotho assured the committee that the contract would be presented next week. He also provided an update on the project, revealing that IRRICO International had completed a reservoir with a capacity of 450,000 cubic meters, designed to store water for food production by SELU Ltd across 20,000 acres, as approved by the Public-Private Partnership Directorate. As of February 28, 2025, the project had incurred Kshs. 750 million in total expenditure and commitment, with the revised estimates for FY 2024/25 allocating Kshs. 500 million. However, this still leaves a Kshs. 250 million balance, despite the contractor’s completion of the work, resulting in pending bills.


The committee also received updates on other ongoing projects. PS Kimotho highlighted the Bura Irrigation Project, which is transitioning from diesel-fed irrigation to a more sustainable gravity-fed system. This shift is expected to expand the irrigated area from 6,000 acres to 25,000 acres. Additionally, the Lower Kuja project has seen an increase in its irrigated area from 600 acres to 1,145 acres.


Meanwhile, the Mwache Dam, which is currently 24% complete, has experienced a budget increase of Kshs. 600 million. This increase is largely attributed to the need to compensate landowners to facilitate the construction of the main dam. The project is part of Kenya’s long-term water and irrigation infrastructure development plans, though the rising costs have raised concerns about the ability to meet deadlines and budget constraints.


As the committee continues to scrutinize the progress of these projects, the combination of budget cuts, pending bills, and increased costs signals a challenging road ahead for the country’s ambitious irrigation and water infrastructure plans.


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