Procurement hurdles derailing govt’ stimulus package

Posted on February 4, 2011

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Finance Minister Uhuru Kenyatta

Treasury is blaming bottlenecks in the governments procurement system for the failure of the Economic Stimulus Package.

According to Finance minister, undisclosed amount of money allocated for the program this financial year (2010/2011) still lie in accounts not utilized.

This means that the money will be returned to Treasury at the end of the financial year.

The concept of the stimulus package came into existence in the 2009/10 Budget speech to parliament.

The Sh22 billion package was tailored around labour-intensive construction projects in the 2009/2010 budget and targeted at reviving economic growth.

This was after the economic downturn in 2008 following a prolonged drought, electoral violence, a rally in oil and food prices and spill over effects of the global economic crisis.

In its implementation, all works and services are to be sourced using existing government procurement regulations [Public Procurement and Disposal Act, 2006 and its attendant Regulations, 2006 and subsequent Amendments, 2009].

It is this clause that Treasury now blames for the turn of events that will see most of the money allocated for the package go back to government coffers.

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