The government has shown remarkable progress in allocating its financial resources. Government spending on infrastructure and human capital has had a positive impact on the transport, education and health sector.
However, World Bank recommends improvement in monitoring outcomes of the country’s resources.
A World Bank Report shows that poor management of public resources has seen the country incur massive costs on projects that would be otherwise cheaper.
County and national government delay paying vendors. This move inflates the cost of development projects since contractors account for the risk of delay when creating bids.
Additionally, delays in payments eventually affects the private sector liquidity, which limits private companies’ capacity to partake capital intensive infrastructure projects. The effects eventually slow down their profits and ultimately hinders economic growth.