The Ministry of Transport has raised alarm over a Ksh37.7 billion funding shortfall that threatens critical infrastructure projects across Kenya, including roads, rail, ports, and e-mobility initiatives. Cabinet Secretary Davis Chirchir briefed the National Assembly Transport Committee on Tuesday, revealing that while the Ministry requested Ksh102.7 billion for 2026/27, Parliament approved only Ksh65.1 billion.
CS Chirchir highlighted that capital-intensive projects, such as the LAPSSET Corridor, Nairobi Railway City, Berth 1 at Dongo Kundu SEZ, and the National E-Mobility Policy, risk delays unless additional financing is secured. He warned that pending bills, totaling Ksh850 billion in the sector, could stall progress on ongoing construction, maintenance, and rehabilitation projects.
Principal Secretary Mohamed Daghar assured MPs that all projects follow prioritisation guidelines aligned with Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA). Near-complete projects, including the Nairobi–Nanyuki Meter Gauge Railway and Mariakani–Port Reitz Freight Drainage Channel, are being fast-tracked to minimise cost overruns.
Chirchir also noted that reforms under the Government Owned Enterprises Act, 2025, are underway for Kenya Ports Authority and Kenya Railways Corporation, while full implementation remains pending court injunctions. He called on Parliament to accelerate investment in the LAPSSET Corridor to unlock regional trade and logistics potential.
The Committee committed to supporting prudent financial management but stressed the urgent need to bridge the Ksh37.7 billion gap to ensure timely delivery of projects that underpin national economic growth and job creation.
