The State Department for Water and Sanitation has defended its budget performance while calling for additional funding, despite receiving a Treasury budget ceiling of Sh56.846 billion for the 2026/27 financial year.
Appearing before the National Assembly Committee on Blue Economy, Principal Secretary Julius Korir said the department’s budget estimates amount to Sh56.481 billion, comprising Sh8.525 billion for recurrent expenditure and Sh47.956 billion for development expenditure. This places the department Sh365 million below the BPS ceiling.
Korir said, “The overall Budget Estimates are Sh365 million below the total BPS ceiling.”
The department attributed the increase in recurrent expenditure to enhanced Appropriation-in-Aid (A-in-A) targets for the Athi Water Works Development Agency, Coast Water Works Development Agency, and Water Resources Authority, as well as a slight increase in government net funding allocation to other State agencies.
Korir explained that the funds are intended to cover “non-discretionary expenditure on Personnel Emoluments (PE) and core Operations and Maintenance (O&M).”
At the same time, the department noted that the development budget had been reduced. The PS stated, “The development budget decrease of Sh1.547 billion is due to rationalisation and alignment of donor commitments.”
The department reported that by the third quarter ending March 2026, it had achieved an overall budget absorption rate of 75 per cent, with recurrent expenditure at 77 per cent and development expenditure at 74 percent. It attributed this performance to payroll commitments, operational spending, and improved donor fund disbursements.
Revenue performance was also highlighted, with collections of Sh4.2 billion, representing 84 per cent of a target of Sh5 billion.
The State Department said it continues to implement several strategic projects across the country, including water supply, sanitation, and irrigation schemes. Among the flagship projects cited were Thwake Dam, Mwache Dam, the Lake Victoria South Water Sector Development Programme, the Chemususu Dam Water Supply Project, and the Dandora Estate Sewerage Treatment Plant Expansion.
The memorandum further indicates that several ongoing projects require additional financing to support implementation, expansion of water and sanitation services, and completion of infrastructure works. The department warned that budget reductions could slow progress on priority programmes.
A major concern raised in the submission is the growing stock of pending bills. Korir told the committee, “The State Department has outstanding historical pending bills amounting to Sh28.3 billion, consisting of Sh4.5 billion and Sh23.8 billion for recurrent and development expenditures respectively.”
In addition, the department disclosed that current pending bills amount to Sh6.9 billion, comprising Sh904 million for recurrent expenditure and Sh6 billion for development expenditure.
According to the PS, “The bills continue to remain outstanding, which may result in legal claims against the State Department, with the potential to attract additional penalties and interest charges, thereby increasing the cost of project implementation.”
The largest historical and current obligations are linked to various Water Works Development Agencies, including Athi Water Works Development Agency, Central Rift Valley Water Works Development Agency, and Coast Water Works Development Agency.