FINANCING AND MAINTENANCE OF ROAD
INFRASTRUCTURE IN THE COUNTIES
PRESENTATION
INSTITUTION OF ENGINEERS OF KENYA
CONFERENCE
11TH MAY 2012
BY
Dr. Francis N. Nyangaga
Executive Director; Kenya Roads Board
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PRESENTATION
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BACKGROUND
HISTORICAL PERSPECTIVE
FORMATION OF KRB
RATIONALE FOR REFORMS
REFORMS HISTORY
KRB MANDATES
KRB FUNDING RURAL ROADS
CONSTITUTIONAL DISPENSATION
FUNDING COUNTY ROADS
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BACKGROUND
• At independence, about 42,000 kms of roads,
• About 1,800 paved and for the rest, very little was gravel and
most earth
• Decade of the 1960s and 1970s, with support from
development partners, there was major investment in growth
of infrastructure.
• Resulting in an accelerated growth of the road network.
• Government opened up the countryside, providing critical
access to almost all parts of Kenya.
• In the 1970s, bilateral donors contributed to RARP and the
bridging and culverting programme, improving earth roads to
gravel using labour intensive methods.
• There was a tremendous growth in the paved road network.
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HISTORICAL PERSPECTIVE
• Immediately after independence, the Local Government Act
fully implemented.
• County Councils became quite powerful.
• They were given resources to provide services to people
within their jurisdictions.
• County Councils had capacities to collect revenue and fund
their activities
• In the decade of the 1960s, almost all County Councils had
their own plant, equipment and personnel and could
adequately maintained rural roads.
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HISTORICAL PERSPECTIVE …2
• In early part of the 1970s, political interference cut
off revenue streams of the County Councils
• Maintenance of rural roads started to suffer.
• Most of the County Councils could no longer
maintain their plant and equipment, resulting in
failure to maintain rural roads.
• Pressure from local communities and politicians
resulted in the management of most of the rural
roads being transferred to the central government.
• Plant and equipment belonging to county councils,
was, however not transferred to central government.
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HISTORICAL PERSPECTIVE …3
• As the decade of the 1970s approached its end, the demand for
government resources from other sectors resulted in the road
sub-sector receiving less funds for maintenance of roads
• At this point, most of the paved roads were approaching their
design lives and needed critical intervention measures.
• This was not forthcoming.
• In the early 1980s, roads were receiving just about 10 -15% of
their needs
• This was happening in most of Sub-Sahara Africa and there
was concern about loss of road asset value if attention was not
paid
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RATIONAL FOR REFORMS
• In the mid 1980’s it was realized that Roads were falling apart
and there was danger of loss of the road asset in Sub Saharan
Africa which had cost billions of dollars.
• In the late 1980s, United Nations Economic Commission for
Africa, World Bank and several other Development Partners
concerned with the inefficiencies in the Transport Sector in
Sub-Sahara Africa (SSA) and possible loss of the road asset,
developed the Sub-Sahara Africa Transport Programme
(SSATP)
• A key component of the SSATP was the Road Maintenance
Initiative (RMI).
[CONTD]...
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RATIONALE FOR REFORMS
• Objective of the SSATP was to arrest the deteriorating
condition of road assets in SSA and other developing parts of
the world.
• Findings strongly pointed towards need for transport sector
reforms.
• On the basis of this and similar problems in SSA, SSATP
identified the four building blocks of reform in the roads sub
sector.
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RATIONALE FOR REFORMS …2
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These were:
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Involving road users in road management.
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Establish a sustainable source of funds for road
maintenance
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Allocate clear responsibility of the road network to
agencies/institutions to manage
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Improve capacities of road agencies/institutions to manage
roads in a business like manner
[CONTD]...
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REFORMS HISTORY
• In 1992, Government of Kenya adopted the reform
building blocks.
• In 1993, the RMLF was established.
• Road Sector Institutional Study (1995-1998)
• Establishment of KRB – FY 2000/2001
• Formation of Road Agencies, and allocating
categories of specific road network to the road
authorities in FY 2007/2008.
• Constitutional Promulgation in August 2010
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KENYA ROADS BOARD ACT
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No. 7 of 1999
Date of Assent: 6th January, 2000.
Date of Commencement: July 2000.
Mandates as amended in the Kenya Roads
Board Act.
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BROAD OBJECTIVE
6.(1) The object and purpose for which the
Board is established is to oversee the road
network in Kenya and coordinate the
maintenance, rehabilitation and development
funded by the Fund and to advise the Minister
on all matters related thereto.
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SPECIFIC MANDATES
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co-ordinate the optimal utilization of the Kenya
Roads Board Fund (Fund) in implementation of
programmes relating to the maintenance,
rehabilitation and development of the road
network;
seek to achieve optimal efficiency and cost
effectiveness in road works funded by the Fund;
manage the Fund;
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SPECIFI KRB MANDATES …cont 2
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Develop a five year RISP.
After approval by Minister for Finance, determine the
allocation of financial resources from the Fund or from any
other source available to the Board required by road
agencies for the maintenance, rehabilitation and
development of the road network.
Funding should ensure that the allocation of funds is pegged
to specific categories of roads.
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40% to A, B and C roads
32% to roads in constituencies
15% to roads in cities and municipalities
1% to roads in National Parks and Game Reserves.
In essence, 47% is currently funding roads in counties.
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KRB FUNDING RURAL ROADS
• From its formation, KRB has been involved in
devolving funding for rural and urban roads.
• The Act set aside a portion of the funds to fund rural
roads through the District Roads Committees
(DRCs).
• Similarly, a portion of funds were identified for
funding local authorities (cities, municipalities, town
councils and county councils)
• By 2007/2008, KRB was funding 184 DRCs and 134
local authorities.
[CONTD]...
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KRB FUNDING RURAL ROADS …2
• KRB received Annual Road Works Programmes
(ARWPs) directly from the 184 DRCs and 134 LAs.
• Together with the ARWP from the Roads
Department, it compiled and approved the Annual
Public Roads Programme (APRP).
• KRB funded and coordinated this programme up till
2008/2009.
• Using very clear guidelines, KRB followed up the
implementation of the APRP countrywide through
monitoring and value for money audits.
[CONTD]...
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KRB FUNDING RURAL ROADS …3
• In FY 2007/2008 the Kenya Roads Act, established
the road authorities (KeNHA, KeRRA and KURA).
• KeRRA was given the mandate to manage rural
roads.
• The KRB Act was amended to fund rural roads
through KeRRA.
• KeRRA became responsible for receiving ARWPs
and forwarding same to KRB.
• In 2009, the Kenya Roads Board Act was amended to
bring on board CRCs, the CRTCs and the
Constituency Road Fund Accounts
[CONTD]...
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CONSTITUTIONAL DISPENSATION
• In 2010, Kenya promulgated a new Constitutional
• Two major planks of the constitution are;
– the devolving of Government to Counties, and
– the Bill of Rights.
• The Bill of Rights requires that every citizen must have a right
to quality services.
• These services include right to reasonable access and freedom
of movement.
• Movement is facilitated by roads.
• Every citizen had a right to goods and services of reasonable
quality.
• Roads are a right to Kenyan citizens.
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CONSTITUTIONAL DISPENSATION …2
• 47 counties identified in the constitution.
• Each is governed by the County Government, headed by a
governor.
• Fourth schedule clarifies the responsibility of the central
government and the county government.
• Central Government
– Responsible for road traffic; the construction and operation of
national trunk roads; Standards for construction and maintenance
of other roads by counties (among others).
• County Government
– County roads; Street lighting; traffic and parking; public road
transport (among others).
• The Central Government and Counties are independent
and interdependent.
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CONSTITUTIONAL DISPENSATION …3
• The constitution identifies two types of roads
– National trunk roads
– County roads
• There is need to clearly and without ambiguity define
those two types of roads
• The Ministry of Road is working on developing the
definitions
• Broadly speaking those roads classified as A, B and C
could qualify to be called national trunk roads
• The rest of the roads including all roads in cities,
municipalities and town councils are county roads.
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CONSTITUTIONAL DISPENSATION …4
• The constitution provides for the establishment of the
Governor supported by an executive Committee.
• Similarly, there will be a County Assembly.
• The budget for the county will be passed by the County
Assembly.
• This includes the budget for county roads.
• This means that the preparations for the ARWP for
county roads will be carried out and finalized at the
county level.
• In preparing the ARWP and its budget, there will be no
reference to any other government entity.
• The constitution requires that the community must
participate in any project using public financing.
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FUNDING COUNTY ROADS
• The counties expect to get their funding from
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Consolidated fund
Equalization fund
Contingencies fund
Kenya Roads Board Fund
Development Partner Financing
Loans and grants
Public Sector financing
• Portions of these fund will be used to fund construction,
rehabilitation and maintenance of road sin the counties.
• There will be need for the county government to receive
guidelines for preparations of the ARWP, using these funds.
• Kenya Roads Board will provide the guidelines, and assist the
county government in preparation of the ARWP and its
budget.
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July – KRB releases
Ceilings
August – Counties
complete ARICS and
compile
programme/Community
Participation
End September – counties
submit draft programme
for discussion and advise
October-November –
counties submit
programme to county
assemblies for approval
December – KRB compiles
APRP
January – Board adopts
Counties ARWPs/APRP
March – National APRP
ready for implementation
Annual - Financing as per
monthly receipts.
ARWP PREPARATION CYCLE
March
July
February
August
January
End
September
December
OctoberNovember
FUNDING COUNTY ROADS …2
• It is envisaged that KRB will be a shared institution.
• This means that they will serve both the national government and
the county governments.
• The Act will be reviewed to identify the institution that will be
responsible for national trunk roads and the 47 counties as road
agencies.
• There will be 48 road agencies funded from the KRBF.
• KRB will provide funding in the normal manner, providing funds to
the counties on a monthly basis as and when received.
• KRB also foresees itself as the partner to counties during sourcing of
funds (loans, grants or PPPs).
• Also, KRB sees itself as the coordinator for management of funds
from bilateral donors.
• Similarly, KRB sees itself as the coordinator for management for
development funds for roads at the counties level.
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FUNDING COUNTY ROADS …3
• KRB put the necessary mechanisms and management systems
for funding and coordination of road works programme for
DRCs (130) and Local Authorities (138).
• It has adopted the same systems with improvements and is
currently using them with the road authorities (KeNHA,
KeRRA and KURA)
• KRB will review the necessary coding and use the same
systems for management of funds at county level.
• To independently deal with each county, there may be need to
revisit and amend the mandates of the KRB to align them with
the constitution.
• KRB has the capacity and management experience to fund
county roads
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THANK YOU
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