NAIROBI: The Government will soon make payments for roads projects only after completion.
The latest development in the road sector follows Cabinet approval of the Road Annuity Programme Fund, which will be implemented under a Public Private Partnership arrangement.
It will be a significant shift from the past practice as payments will only be linked to completion of roads. The Government has constantly come under sharp criticism for paying for road projects which are never completed.
The Cabinet further approved the Road Annuity Programme, which creates a framework to facilitate a partnership between the Government and the private sector.
President Uhuru Kenyatta chaired the Cabinet meeting at State House, Nairobi, yesterday. Under the annuity programme, a fund will be established to ensure the seamless financing of the roads sector from the design to development and maintenance of roads.
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This is expected to deliver value for money to citizens. Payments for services delivered by private contractors will be made from a Road Annuity Fund that will be established for the purpose of channelling resources meant for payments for the development of roads.
The fund will guarantee timely payment of contractors and services. A governance structure for the Annuity Programme and Annuity Fund has been set up.
The Governance framework puts in place regulations prescribing how the fund will be managed, with an oversight committee and secretariat to oversee operations.
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The fund will start off with seed capital of Sh500 million initially and will identify other sources of funding.
A total of Sh1.2 trillion will be required to implement the programme over the next decade.
The Cabinet also considered and approved the Health Bill, 2015.
The objective of the bill is to address emerging legal issues occasioned by the promulgation of the Constitution.
The Cabinet further approved the Fair Administrative Action Bill, 2014 for submission to Parliament.
The objective of the Fair Administrative Action Bill, 2014 is to implement Article 47 of the Constitution by imposing a requirement for fair and expeditious administrative action. The Bill also makes provision for review of any action that may adversely affect a person.
Also approved was the establishment of a Regional Centre on Small Arms in the Great Lakes Region, the Horn of Africa and Bordering States and establishment of a National Chemical, Biological, Radiological and Nuclear Reference Centre in Nairobi. Cabinet also approved hosting of the 10th World Trade Organization Ministerial Conference in Nairobi, in December.
