Treasury has told State agencies and county governments that it has no special funds for compensation of land way leaves. Thus, ministries, departments and agencies (MDAs) as well as the regions, are expected to exercise prudence when paying for project land.
In a new circular, Treasury issued a checklist for mandatory requirements on seeking external financing, including undertaking advance surveys, mapping and ring-fencing of Government assets to avoid unnecessary compensation.
Funding including but not limited to land and way leave compensations among others that form part of counterpart funding must be prioritised under the ministry’s sector allocation through the normal Medium Term Expenditure Framework (MTEF) budgeting process in accordance with the requirements of the loan agreement.
Land compensation is one of the expenses that have inflated the cost of projects, a problem that President Uhuru Kenyatta is keen to address by raising the bar on transparency and accountability during implementation.
There should also be commitment to relocate public utilities such as electric and sewer lines. State agencies and county governments also need to confirm adequate human resource capacity for project implementation.
