Despite Kenya having a huge potential for growth, delays in infrastructural development are becoming a major setback.
A new report by an independent research firm, Deloitte, reveals that government projects lead to delayed construction, coupled with budgets that went overboard compared to private sector projects, most of which were completed on time.
The report indicates that eight of every 10 high-value projects in Africa are completed after their set timelines.
The projects under study were ones valued above Sh100 billion which constituted mainly energy and transport whose impact is of macroeconomic concern.
Deloitte said it assesses a project immediately after its ground-breaking.
While releasing the report on Wednesday, Deloitte’s Jean-Pierre Labuschagne noted the alarming rate of overboard budgets and delays in Africa.
Labuschagne commended the government’s oversight role in dealing with projects delays.
Majority of Kenya’s mega-projects are partly or wholly funded and constructed by Chinese firms.
The study found ineffective regulations by governments and institutions as the main cause of project overruns whose eventual delay lead to a decline in economic viability.
Stretched construction budgets are as a result of an increase in construction material in ongoing projects as a result of a delay in procurement.
Noting East Africa’s potential in a global economy, the report commended infrastructural development as major business machinery.
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