Housing, Public Works departments request Sh6.8 billion in additional funding

The Housing and Public Works departments are staring at stalled projects and crippled operations after severe budget cuts left them with little room to function.

Appearing before the National Assembly Committee on Housing, Urban Planning and Public Works, the two departments made a joint plea for urgent financial support, warning that the current funding in the 2025/26 budget estimates is too low to sustain critical activities.

Housing and Urban Development Principal Secretary Charles Hinga told the committee that after paying for fixed obligations such as rent, utilities, security, cleaning services, and support to the Nairobi Rivers Commission, the department is left with just Sh99 million to run its core mandate.

“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,” he said.

To bridge the shortfall, Hinga asked the committee to support the allocation of an additional Sh4 billion for operations, maintenance, evaluations, and the recruitment of 4,000 interns.

He also requested Sh1.1 billion for the construction of Kangundo Road to Ruai wholesale market and the Ruai Sewerage Link Road.

His counterpart in the Public Works Department also painted a grim picture, saying funding cuts had negatively affected both recurrent and development programmes.

The department is asking for Sh1.686 billion more, broken down into Sh336 million for running costs, Sh302 million for recruiting technical officers across the 47 counties, Sh200 million for motor vehicles, and Sh850 million for building footbridges, jetties and sea walls.

Enhanced allocation

“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 mMillion for the purchase of motor vehicles and Sh850 million for the construction of foot bridges jetties and sea walls,” said Public Works PS Joel Arumonyang.

Committee members, while acknowledging the funding challenges, advised the Housing PS to include arbitration clauses in all contracts to avoid court disputes.

They also stressed the need to finalise the affordable housing regulations, warning that without them, legal gaps could delay progress.

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

MPs further suggested that the Public Works Department consider working with the Kenya Defence Forces to build smaller bridges as a cost-saving measure.

The committee also committed to meeting with the National Treasury to explore solutions.

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• National Assembly Committee on Housing
• Principal Secretary Charles Hinga
• Housing
• Public Works departments request Sh6.8 billion in additional funding

However, the committee chairperson, Johanna Ng'eno, reminded both PSs that the committee can only propose budget reallocations and does not have the power to allocate funds.

“This committee doesn't have the money to allocate to you. We can only propose reallocations of GoG funding and not Appropriations in Aid,” he said.

The committee will write and adopt its final report on the 2025/26 Budget Estimates next week.