Public Investment Management Unit established to reduce overlaps

Written By: Judith Akolo


A Public Investment Management Unit has been established under the National Treasury to reduce overlaps in government programs and curb runaway projects costs.

The Unit is expected to enhance efficiency in identification and implementation of priority social and investment projects that help to improve the quality of life for Kenyans.

In the past revenue has been lost or mis-spent due to duplication of projects within government.

The move also takes into account government efforts aimed at increasing efficiency, effectiveness, transparency, and accountability in public spending.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163

In the 2019 draft Budget Policy Statement, the National Treasury says “In particular, the implementation of PIM regulations under the Public Finance Act will streamline the initiation, execution and delivery of public investment projects.”

Also Read  Professionals in Isiolo County join hands to form Mfinyanzi Sacco

The PIM is expected to curb runaway projects costs, eliminate duplications and improve working synergy among implementation actors for timely delivery of development projects.

The move is an effort aimed at ensuring that expenditures as a share of GDP decline from 24.4 percent in the 2017 to 2018 financial year to 23.8 percent in the 2019 to 2020 financial year and a further to 22.2 percent in the 2022 to 2023 financial year.

Also Read  Stanbic Bank, IFC set up Kshs 20B loan facility for women enterprises

At the same time, revenues as a share of GDP are projected to increase from 17.3 percent in the last financial year to 18.3 percent in the 2019 to 2020 financial year.

The Treasury notes that the additional resources are expected to support the fiscal consolidation program and bring the fiscal deficit down to 3.0 percent of GDP by 2022 to 2023 financial year.

The strengthening of tax administration and compliance is expected to be achieved through: enhanced scanning to detect concealment and increase efficiency in cargo clearing through procurement of additional scanners and full integration of all scanners; Use of Regional Electronic Cargo Tracking System to ensure all goods reach the desired destinations and avoid dumping; Use of third-party information to identify non-compliant property developers and ensure they are included in the tax base; and Detection of non-compliance through I-Tax data matching will help to mobilize revenues, boost government delivery and performance while cushioning against further revenue shortfalls.

Also Read  Private sector players want public partnerships to boost water access

Tell Us What You Think