5 key projects in Kenya that will benefit from the FY 2022/23 Budget

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Over 30 projects in Kenya are set to benefit from the 2022/23 financial year budget that was unveiled on June 15th 2023. The budget was presented by Prof. Njuguna Ndung’u. The latter is the country’s Cabinet Secretary for The National Treasury and Economic Planning.

To recap, the proposed total programmed expenditures spending for the FY 2023/24 has been capped at Ksh 3.68 trillion. Out of this, close to 250 billion has been allocated to various projects ranging from the construction of water and sewage infrastructure to classrooms and other institutions.

Additionally, the projects include the construction of residential buildings, hospitals and markets as well as the development of power plants and data centers. Furthermore, they include electricity and fibre optic connections, construction of special economic zones and parks as well as roads, railways, sea and airport infrastructure.

Below are the key projects that will benefit from these allocations.

  1. Kenya Standard Gauge Railway (Kenya SGR)

The Kenya Standard Gauge Railway will connect Kenya’s cities and link the East African country to the neighbouring nations. These nations include Uganda, South Sudan, the Democratic Republic of the Congo, Rwanda, and Burundi. The line might as well extend to Addis Ababa, in neighbouring Ethiopia to the north.

The Kenya SGR is divided into about seven segments. These are the 609 kilometres Mombasa–Nairobi section which is famously known as the Mombasa–Nairobi Standard Gauge Railway. There is also the 120 kilometers Nairobi–Naivasha, and the 267 kilometers Naivasha–Kisumu sections.

The others are the 130 kilometres Kisumu–Malaba and the 1,500 kilometres Lamu–Lokichar-Nakodok sections. Lastly, there are the 700 kilometres Nairobi–Moyale, and the 460 kilometres Naivasha–Lokichar sections.

The project, which has two of its first sections operational has been allocated a total of Ksh 37.4 billion.

2. Dongo Kundu Special Economic Zone

The Dongo Kundu Special Economic Zone is located in Likoni, a division of Mombasa County, Kenya, located to the southwest of Mombasa Island.

The development is designed to be a multi-sectoral zone comprising industrial parks, free trade zones/free port, Dongo Kundu Port and Tourism Zone (MICE). It also includes business service parks as well as a commercial and residential zone.

The project is developed by Dongo Kundu Special Economic Zones Authority under the Ministry of Industrialization. It will benefit from an allocation of Ksh 2.6 billion in the FY 2023/24 budget.

3. Konza Technopolis Project

Konza (Konza Technopolis) is a key flagship project of Kenya’s Vision 2030 economic development portfolio. The city is located 60km from Kenya’s capital Nairobi.

When complete, it is expected to be a world-class city, powered by a thriving information, communications and technology (ICT) sector, superior reliable infrastructure and business-friendly governance systems.

The city will be home to leading companies in education, life sciences, telecom, and BPO/ITES. Commercial space for these uses will be complemented by diverse residential neighbourhoods, hotels, a variety of retail offerings, community facilities, and other public amenities.

Also Read: Top 5 energy projects in Kenya to face funding cuts

Konza Technopolis is expected to be a walkable city, one that includes high-quality public spaces, active and varied amenities, and short commute times between destinations. The project has been allocated a total of slightly over 10 billion.

1.2 billion of the total amount will go towards the development of Konza Data Centre and Smart City Facilities. 5.7 billion is set for the construction of Kenya Advanced Institute of Science and Technology (KAIST) while the rest will facilitate the implementation of Phase 1 B of Konza Complex.

4. Nairobi Bus Rapid Transport Project

The Nairobi BRT system project was proposed by NAMATA in a 2019 report. It covers Nairobi City County and the adjoining counties including Kiambu, Kajiado, Machakos, and Murang’a.

The system includes a total of five lines named after Kenya’s Big Five animals i.e., Simba (Lion), Kifaru (Rhino), Chui (Leopard), Ndovu (Elephant), and Nyati (Buffalo). Ndovu begins at Kangemi to Imara while Simba starts in Bomas to Ruiru along Thika Superhighway.

Chui on the other hand connects Njiru to Show Ground while Kifaru connects Mama Lucy to T-Mall. Lastly, Nyati links Balozi to Imara. The government of Kenya allocated Ksh 1.1 billion for this project which is still under development.

5. The Last Mile Connectivity

About Ksh 583 million has been assigned for the implementation of this project. The scope of the project includes the construction of single and three-phase High and Low voltage lines as well as the installation of service cables and Energy meters.

It seeks to hasten connectivity and network expansion by adopting a new electricity supply model that focuses on availing service connection to the customer before engaging them to pay for the services.

Reportedly, this model will assist in overcoming existing bottlenecks in the connectivity pipeline. The project on the other hand will fasten the government’s mission of having at least 70 per cent of Kenyan households connected to electricity.

In total 30 projects or it’s thereabouts will benefit from the FY 2023/24 budget. The highest amount allocated in this budget is Ksh 244.9 billion for the construction of roads and bridges as well as their rehabilitation and maintenance. The lowest amount awarded, on the other hand, is Ksh 500 million and Ksh 475 million for the development of SEZ Textile Park Naivasha and the implementation of Konza Complex Phase 1 B respectively.