Housing Projects Face Possible Stall Over Funding Shortfall

The State Department for Housing has warned of potential delays in ongoing housing projects due to an urgent funding shortfall.

In a presentation to the Parliamentary Committee, Principal Secretary Charles Hinga disclosed that the proposed FY 2025/2026 Supplementary Budget I reduces donor funding for the department by KES 800 million, bringing the total budget down from KES 13.341 billion to KES 12.541 billion. He cautioned that this cut could significantly affect the implementation of housing programmes.

Mr. Hinga also highlighted staffing challenges within the Department, noting that some officers are working up to three shifts to cope with a personnel shortage. He confirmed that the Department had anticipated the funding gap, having already utilized 80 per cent of its allocated funds. While some money had been saved in Treasury Bills, the National Treasury has declined to release it.

Vice Chairperson Hon. Mugambi Rindikiri, who chairs the Committee, questioned whether the shortfall was due to poor planning and why additional staff had not been recruited. In response, the PS confirmed that a request for more personnel had been submitted but was not approved.

The Committee pledged to engage the Cabinet Secretary for the National Treasury and Economic Planning to seek clarification on the funding issues.

Meanwhile, the Committee also met Principal Secretary Joel Arumonyang of the State Department for Public Works, who defended his department’s budget, citing a shortage of motor vehicles as a key operational challenge.

The Committee acknowledged that both departments are underfunded and committed to exploring solutions to address the budgetary gaps, ensuring that ongoing projects are not stalled.