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Saturday, June 12, 1999

Project funds too little - AAK

By NJONJO KIHURIA

The Sh7.6 billion proposed for rehabilitation of the country's infrastructure is insufficient in jump-starting the economy, says the Architectural Association of Kenya.

In a rejoinder to Finance Minister Francis Masakhalia's Budget speech, the association says improvement of infrastructure needs a massive increase in Budget allocation of not less than Sh30 billion.

"To come out of the stagnation we are currently experiencing in all sectors of the economy, the enabling communications and infrastructure facilities must first be in place," said AAK Chairman Julius Kibwage and two members in a statement yesterday.

Noting that no mention on how to deal with stalled projects across the country was made, the association called on the government to allow the private sector purchase them (projects) or be part of joint ventures for their completion.

The association said huge government resources have been tied in these projects, adding that their completion with the assistance from the private sector would allow them be utilised and commercially operated.

"This will create jobs, spur growth and demand in the building industry and, of course, alleviate accommodation shortages to a large extent," said the AAK members, who included Mr James Kimathi and Mr David Situma.

They called for the immediate creation of a countrywide building authority. Private developers should also be allowed to participate in building roads and other infrastructure and get appropriate tax rebates in return.

"Private involvement in running of roads and telecommunication services on well established commercial principles must be seen as the way forward," they said.

The association said the tourism sector should have been given major tax rebates to help encourage owners invest in building renovations and improvement of their premises for effective competition.

The AAK noted with regret that Mr Masakhalia made little mention of its May national building convention recommendations, "particularly on the establishment of boards and authorities to effectively deal with issues of land tenure, security, the legal system and the corruption in public funded projects".

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