MPs told budget cuts could derail affordable housing and key infrastructure

Two key government departments have sounded the alarm over budget cuts that they say have crippled their ability to deliver critical services and projects.

The Housing and Urban Development and Public Works departments are appealing to Parliament to intervene, warning that the proposed allocations for the 2025/26 financial year are too low to support their operations and development goals.

Appearing before the National Assembly Committee on Housing, Urban Planning and Public Works, the Housing PS Charles Hinga told lawmakers that the department is left with just Sh99 million after meeting fixed costs.

These include Sh15 million for utilities, Sh191.99 million in rent, Sh128 million for contracted security and cleaning services, and  Sh187 million for the Nairobi Rivers Commission.

"After settling mandatory expenses such as Utilities Sh15 Million, rent Sh19  million contracted guards and cleaning services Sh128 Million and Nairobi Rivers Commission Sh187 Million, the State Department remains with only Sh99 million to carry out its mandate, which includes monitoring and evaluation exercises for the affordable housing units, which isn't enough," said the Housing PS.

The department is asking for an extra Sh4 billion to support operations, maintenance, evaluations, and the recruitment of 4,000 interns.

It is also seeking  Sh1.1 billion for the construction of the Kangundo Road–Ruai market and sewerage link.

The situation is not any better at the Public Works Department. The PS lamented that in-year cuts have disrupted both routine operations and long-term development plans.

He told the committee that the department urgently needs Sh1.686 billion in additional funds, broken down into Sh336 million for recurrent costs, Sh302 million for hiring technical staff across all counties,  Sh200 million for motor vehicles, and Sh850 million to construct footbridges, jetties, and sea walls.

"This department needs an enhanced allocation of Sh336 Million in the recurrent vote, Sh302 Million for recruitment of technical officers to be deployed in headquarters of all 47 counties, Sh200 Million for the purchase of Motor Vehicles and  Sh850 for the construction of foot bridges jetties and sea walls," said the Public Works PS.

The committee urged the Housing PS to include arbitration clauses in contracts to help resolve disputes without going to court.

Lawmakers also pressed for the urgent completion of affordable housing regulations, saying legal gaps could hold back implementation.

"Even if you fast-track things, without the regulations, you won't go anywhere," said the committee’s vice chairperson.

In an effort to help Public Works cut costs, MPs advised the department to explore partnerships with the Kenya Defence Forces for construction of small bridges.

The committee also promised to hold a meeting with the National Treasury to find possible funding solutions.

However, the committee chairperson reminded the two PSs that the committee does not control budget allocations.

"This Committee doesn't have money to allocate you. We can only propose reallocations of GoG funding and not Appropriations in Aid," said the chairperson.

The committee is expected to table its report on the 2025/26 Budget Estimates next week.