The government has come out to explain suspect allocations of Sh8.1 billion in small amounts to infrastructure projects in the new budget that were flagged by the Parliamentary Budget Office (PBO).

The Infrastructure ministry has explained that constraints in financial resources is one of the reasons the government is struggling to repay billions of shillings for projects that had been marked as complete.

Transport and Infrastructure Principal Secretary Paul Maringa explained that the resources available do not allow for allocations of the required amounts owing to the number of projects that are supposed to benefit from available budget ceilings.

Mr Yatani explained that Treasury received the communication from the Danish embassy on the funding after the second supplementary budget had already been approved by the National Assembly.

“The National Treasury wishes to convey the government’s appreciation of the financial assistance from the Government of Denmark and to reiterate that plans have been put in place to ensure that disbursement of the funds will be fast-tracked once the remaining actions from both sides and remaining formal processes are concluded, latest early next week,” the Treasury boss said.