PBO notes that 234 new and ongoing projects in the country are currently being funded using Sh2.17 trillion external loans and grants.
The government has a development budget of Sh744.8 billion, out of which Sh258.4 billion (34.7 percent) will be sourced from lenders.
A shortfall of Sh130 billion in government’s counterpart-funding with external partners risks blocking Sh2.2 trillion projects, the Parliamentary Budget Office (PBO) has warned.
The office says that delays by the State to provide its share of funding to the projects could also trigger external creditors and donors to divert funds to off-budget programmes, which are hard to follow through.
