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Energy Infrastructure ICT Report Draft REPUBLIC OF KENYA ENERGY, INFRASTRUCTURE, AND INFORMATION COMMUNICATIONS AND TECHNOLOGY SECTOR MTEF BUDGET REPORT FY2014/15 – 2016/17 November 2013 TABLE OF CONTENT EXECUTIVE SUMMARY ............................................................................................................. 6 INTRODUCTION ........................................................................................................................... 8 1.1 BACKGROUND ....................................................................................................................... 8 1.2 SECTOR VISION AND MISSION ............................................................................................. 8 1.3 STRATEGIC GOALS /O BJECTIVES OF THE SECTOR ............................................................. 8 1.4 SUBSECTORS AND THEIR MANDATES .................................................................................. 9 1.4.1 Energy and Petroleum Subsector .................................................................................... 10 1.4.2 Transport and Infrastructure Subsector ........................................................................... 10 1.4.3 Information Communications and Technology Subsector .............................................. 10 1.5 AUTONOMOUS AND SEMI -AUTONOMOUS GOVERNMENT AGENCIES (AGA S AND SAGA S) ............................................................................................................................................ 11 1.5.1 Energy and Petroleum Subsector .................................................................................... 11 1.5.2 Transport and Infrastructure Subsector ........................................................................... 11 1.5.3 Information Communications and Technology Subsector .............................................. 12 1.6 ROLE OF SECTOR STAKEHOLDERS ................................................................................... 13 1.6.1 The National Treasury ..................................................................................................... 13 1.6.2 County Governments ...................................................................................................... 13 1.6.3 Private Sector Organizations and Professional Bodies ................................................... 13 1.6.4 Civil Society Organizations ............................................................................................ 13 1.6.5 Development Partners and International Organizations .................................................. 13 1.6.6 Parliament ....................................................................................................................... 13 1.6.7 Academic Institutions ...................................................................................................... 14 2 PERFORMANCE EXPENDITURE REVIEW 2010/11-2012/13 ......................................... 15 2.1 PERFORMANCE OF SECTOR PROGRAMMES -DELIVERY OF OUTPUTS .............................. 16 2.2 REVIEW OF KEY INDICATORS OF SECTOR PERFORMANCE ............................................ 41 2.2.1 Energy Sub sector ........................................................................................................... 42 2.2.2 Transport and Infrastructure Sub sector .......................................................................... 42 2.2.3 ICT Sub sector ................................................................................................................. 43 2.3 EXPENDITURE ANALYSIS ................................................................................................... 45 2.3.1 Analysis of Programme Expenditure .............................................................................. 45 2.3.2 Analysis of Programme Expenditure by Economic Classifications ................................ 45 2.4 REVIEW OF PENDING BILLS .............................................................................................. 66 3 MEDIUM TERM PRIORITIES AND FINANCIAL PLAN FOR THE MTEF PERIOD 2014/15-2016/17 ............................................................................................................................. 68 3.1 PRIORITIZATION OF PROGRAMMES AND SUB -PROGRAMMES ........................................ 68 3.1.1 Programmes and their Objectives ................................................................................... 70 3.1.2 Programmes, Sub-programmes, Expected Outcomes, Outputs and Key Performance Indicators for the Sector ................................................................................................................ 71 3.2 ANALYSIS OF RESOURCE REQUIREMENT VERSUS ALLOCATION ................ 81 4 CROSS SECTOR LINKAGES AND EMERGING ISSUES/CHALLENGES .................... 93 4.1 ANALYSIS OF OTHER SECTORS ’ LINKAGES TO THE SECTOR .......................................... 93 4.2 CROSS SECTOR LINKAGES AND ITS IMPACTS ON RESOURCE ALLOCATIONS ................ 99 4.3 EMERGING ISSUES AND CHALLENGES ............................................................................ 100 4.3.1 Energy and Petroleum ................................................................................................... 100 4.3.2 Transport and Infrastructure .......................................................................................... 101 4.3.3 Information, Communications and Technology ............................................................ 102 5 CONCLUSION .................................................................................................................... 104 6 RECOMMENDATIONS ..................................................................................................... 106 7 ANNEX I .............................................................................................................................. 108 ACRONYMS ASAL - Arid and Semi Arid Lands BASA - Bilateral Air Service Agreement BROP - Budget Review Outlook Paper BPO - Business Process Outsourcing CAO - Civil Aviation Organization CASSOA - Civil Aviation Safety and Security Oversight Agency CBD - Central Business District CILOR - Contribution in lieu of rates DFID - Department of International Development EII - Energy, Infrastructure and ICT Sector ERB - Engineer Registration Board ERC - Energy Regulatory Commission ERS - Economic Recovery Strategy FAA - Federal Aviation Administration FY - Financial Year GDC - Geothermal Development Company GIS - Geographical Information System GOK - Government of Kenya Ha - Hectares ICT - Information and Communications Technology IMO - International Maritime Organization IPO - Initial Public Offering IPP - Independent Power Producer JKIA - Jomo Kenyatta International Airport KAA - Kenya Airports Authority KCAA - Kenya Civil Aviation Authority KENGEN - Kenya Electricity Generating Company KeNHA - Kenya National Highways Authority KeRRA - Kenya Rural Roads Authority KETRACO - Kenya Electricity Transmission Company KFS - Kenya Ferry Services KIHBT - Kenya Institute of Highways and Building Technology KIMC - Kenya Institute of Mass Communication KMA - Kenya Maritime Authority KMS - Kilometres KNA - Kenya News Agency KoTDA - Konza Technopolis Development Authority KPA - Kenya Ports Authority KPC - Kenya Pipeline Company KPLC - Kenya Power and Lighting Company Limited KPRL - Kenya Petroleum Refineries Ltd KRC - Kenya Railways Corporation KURA - Kenya Urban Roads Authority KUTIP - Kenya Urban Transport Infrastructural Programme LPG - Liquefied Petroleum Gas MOEP - Ministry of Energy and Petroleum MOICT - Ministry of Information, Communications and Technology MOTI - Ministry of Transport and Infrastructure MTEF - Medium Term Expenditure Framework MTP - Medium Term Plan MW - Mega Watts NOCK - National Oil Corporation of Kenya NOFBI - National Optic Fibre Network Backhaul Initiative NMT - Non Motorable Transport PPP - Public Private Partnership RBM - Result Based Management REA - Rural Electrification Authority RRI - Rapid Result Initiative SAGAs - Semi Autonomous Government Agencies EXECUTIVE SUMMARY The Energy, Infrastructure and Information Communications Technology Sector consists of Energy and Petroleum; Transport and Infrastructure; and Information and Communications Technology Subsectors. In the Kenya Vision 2030, infrastructure development has been recognized as an enabler for sustained development of the economy and particularly for the seven key Sectors identified under the economic pillar. The EII Sector plays a major facilitating role in realization of the key targets under this pillar. The Kenya Vision 2030 recognizes the importance of development infrastructure as critical for socio-economic transformation. The Infrastructure Sector aspires a world-class provider of cost-effective public utility infrastructure facilities and services’ in the areas of energy, transport and ICT that meet international standards to make Kenya a globally competitive and prosperous country. The strategies and measures to be pursued in the medium term include; supporting the development of infrastructure initiatives around flagship projects, strengthening the institutional framework for infrastructure development, raising the efficiency and quality of infrastructure as well as increasing the pace of infrastructure projects so that they are completed as envisaged, protecting the environment as a national asset and conserving it for the benefit of the future generations and the wider international community. Other measures include encouraging
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