The World Bank has called on the Kenyan government to increase its annual infrastructure budget by at least 10 billion shillings (about US$125.9 million) over the next decade so that the country can achieve middle-income economic status.

The World Bank study which was conducted between 2004 and 2006 but whose initial findings were released in Nairobi late on Thursday said the country can afford it with efficient resource allocation and utilization.

"The burden of spending needs is manageable given Kenya's economy," says the Africa Infrastructure Country Diagnostic (AICD) study titled Africa's Infrastructure: A Time for Transformation.

According to the study, although Kenya compares well with low-income country benchmarks, it is far from middle-income countries, where it aims to be by 2030.

The allocation of the funds will have to be reviewed, with an increase of funding to the transport sector. The bank said poor maintenance has left much of the existing infrastructure in poor state.

World Bank Lead Economist, Vivien Foster, however, said the country should not find it difficult to raise the extra funds needed, as they amount to only 10 percent of the Gross Domestic Product.

The study's release came at a time when critics are questioning the implementation of Vision 2030 which seeks to transform the country into a middle-income economy with, among others, an annual growth rate of 10 percent by 2030.

But the study, which will be released in full later in the year, says the funds could be raised by improving public investment framework, planning, project screening, procurement, budget execution and project implementation.

It is worth noting that development expenditure, much of which goes to infrastructure, declined from 202 billion shillings in the2006/07 Budget to 196 billion shillings in the 2007/08 Budget.

Focusing initially on 24 countries, the AICD seeks to expand the knowledge of physical infrastructure in Africa and provide a baseline against which future improvements in infrastructure services can be measured.

The study mainly assessed the development project carried out in the country up to year 2006, they said. The study focuses only on the activity carried out before or up to 2006.

According to the main findings of the study, port logistics and electricity costs are the biggest brakes on trade and productivity and that ICT reforms have brought major benefits in terms of universalizing GSM coverage in the country.

It also found that though there is sound framework for maintenance of road network, rehabilitation of the same remains an issue in the country.

The study also cautioned that current attempts by Kenya to achieve the Millennium Development Goals seem to be receding with more people using surface water and practicing open defecation.

Foster said though the findings showed a mixed picture for Kenya, it is important that the government doubles effort to meet middle-income countries benchmarks.

"Public investment in transport looks relatively low," it adds. Under the 166 billion shillings annual expenditure, the study says ICT sector's annual allocation will be seen reducing to a mere 4.7 billion shillings annually.

(Xinhua News Agency February 6, 2009)