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KENYA ROADS BOARD ANNUAL PUBLIC ROADS PROGRAMME FY 2012/ 2013 Kenya Roads Board (KRB) is a State Corporation established under the Kenya Roads Board Act, 1999. Its mandate is to oversee the road network in Kenya and coordinate its development, rehabilitation and maintenance funded by the KRB Fund and to advise the Minister for Roads on all matters related thereto. Our Vision An efficient road network for a prosperous Nation” Our Mission “To Fund, oversee and coordinate road development, rehabilitation and maintenance. We shall ensure prudent sourcing and optimal utilization of resources for socio-economic development.” KRB FUND KRB Fund comprises of the Road Maintenance Levy, Transit Toll and Agricultural cess. Fuel levy was established in 1993 by the Road Maintenance Levy Act. Fuel levy is charged at the rate of Kshs 9 per litre of petrol and diesel. The allocation as per the Kenya Roads Board Act is as follows: % Allocation Roads Funded Allocation Agency 40% Class A, B and C 9,992,000,000 KENHA 22% Constituency Roads 5,280,000,000 KERRA 10% Critical links – rural roads 2,400,000,000 KERRA 15% Urban Roads 3,600,000,000 KURA 1% National parks/reserves 240,000,000 Kenya Wildlife Service 2% Administration 488,000,000 Kenya Roads Board Roads under Road Sector 10% 2,400,000,000 KRB/Minister for Roads Investment Programme FOREWORD This Annual Public Roads Programme (APRP) for the Financial Year (FY) 2012/2013 continues to reflect the modest economic growth in the country and consequently minimal growth in KRBF. The Government developed and adopted Vision 2030 which identifies infrastructure as a key enabler for achievement of its objective of making Kenya a middle income country by 2030. The APRP seeks to meet the objectives of Vision 2030 through prudent fund management and provision of an optimal improvement of the road network conditions using timely and technically sound intervention programmes. The Kenya Roads Act No. 2 of 2007 established the three roads authorities which have become fully operational for the past two years. This is further proof of the government’s commitment to improving funds management and implementation of road works in the roads sub sector. The Constitution of Kenya 2010(COK 2010) seeks to further cement this commitment to provision of superior infrastructure through devolved structures. It is not clear, however, how this will affect the institutions set up under the Kenya Roads Act 2007 and subsequent maintenance of roads in the counties. This APRP assumes the status quo will prevail under the transitional arrangements. Kenya Roads Board (KRB) continues to seek ways and means by which the existing backlog of periodic maintenance and rehabilitation of roads can be tackled to bring the entire road network into a maintainable condition. The RSIP envisages an expenditure of close to Ksh. 130 billion annually on Roads which is above the annual road sub-sector allocation by Kshs 25 billion. In this regard the Board seeks to enhance the KRBF by expanding the revenue base in addition to the RMLF and to raise more funds through an infrastructure bond. These figures will continue to change taking into consideration the inflationary trends. It is projected that during FY 2012/2013, the Kenya Roads Board Fund (KRBF) may realise Ksh. 24,370,450,000 which will result from possible collections of Ksh. 23,880,450,000 from the proceeds of the Road Maintenance Levy Fund (RMLF), Ksh. 400,000,000 from Transit Tolls and Ksh. 90,000,000 from Agricultural Cess. In addition to these projected collections into the KRBF, the Government has allocated about Ksh. 99 Billion from the Exchequer to be applied towards road works. These funds still fall far short of the total requirement to bring the road network to a maintainable condition. The need for better roads, however, continues to be a priority for Kenyan road users. To achieve this, KRB is committed to ensuring that value for money is achieved through Technical Compliance, Performance and Financial Audits on all on-going road works activities. The Board acknowledges the immense support it continues to receive from the parent Ministry (Ministry of Roads), from development partners and from road sector stakeholders. This support ensures that as stated in Vision 2030, the objective of realising enhanced economic development in Kenya through an improved road infrastructure is achieved. Dr. Francis N. Nyangaga O.G.W Executive Director 3 TABLE OF CONTENTS 1.0 INTRODUCTION ..................................................................................................................................5 1.1 Introduction ..........................................................................................................................................5 1.3 Annual Public Roads Programme (APRP) .................................................................................................5 1.5 Length of the Road Network ...................................................................................................................5 1.5 Road Network Condition .......................................................................................................................5 1.6 Funding Requirements for the Road Network in Kenya .............................................................................6 2.0 IMPACT OF IMPROVED ROAD INFRASTRUCTURE ...................................................................................7 2.1 Contributions to the National Economy ..................................................................................................7 2.2 Funds Management and Performance ....................................................................................................7 3.0 FUNDING ROAD PROGRAMMES IN FINANCIAL YEAR 2012/2013 .........................................................7 3.1 Projected funding of the APRP for Financial Year 2012/2013 ...................................................................7 3.2 Proposed Funds Disbursement to Road Agencies and Sub Agencies .........................................................8 4.0 IMPLEMENTING THE FINANCIAL YEAR 2012/2013 APRP ........................................................................8 4.1 Assumptions Made ................................................................................................................................8 4.2 Constraints to the APRP ..........................................................................................................................8 4.3 Implementation of the APRP ...................................................................................................................9 4.4 APRP Performance Evaluation .................................................................................................................9 5.0 OVERALL FUNDING OF THE APRP PROGRAMME IN FY 2012/2013........................................................9 5.1 Total Proposed RMLF Funding as per Criteria contained in the KRB Act .....................................................9 5.2.1 KeNHA – Funding .................................................................................................................................9 5.2.2 Prioritization of maintenance intervention measures ................................................................................9 5.3 KeRRA -Maintenance on classes D, E and other Roads .............................................................................9 5.3.1 Equal Allocation for critical links Portion of 10% of the RMLF ....................................................................9 5.3.2 Maintenance of Roads in Constituencies(22%).........................................................................................9 5.4 Kenya Urban Roads Authority (KURA)- (Maintenance of Urban Roads .....................................................10 5.5 Maintenance of Roads in National Parks and Game Reserves ................................................................10 5.6 10% Allocations based on Roads Sub-sector Investment Programme (RSIP) .............................................10 5.7 Roads 2000 Strategy………………………………………………………………………............................... 10 Total KRBF Funding Summary. .......................................................................................................................Page 2% KRB Operations .........................................................................................................................................11 40 % KeNHA- Administration ...........................................................................................................................12 40% KeNHA - Road Works. .............................................................................................................................13 KeRRA - Administration ...................................................................................................................................16 10% RMLF KeRRA Work Programme - Critical links. ..........................................................................................17 22% RMLF KeRRA Work Programme- constituencies. .........................................................................................22 15% KURA - Administration .............................................................................................................................52 15% KURA Work Programme - Periodic Maintenance ........................................................................................53