World Bank to Bear the Costs of Kenya’s Ksh3.1 Billion Constituency Innovation

President William Ruto’s vision to set up 1,450 village digital hubs across the country was in jeopardy after the National Treasury on July 2024, instituted austerity measures. 

The initial plan by the President was to use part of the National Government – Constituency Development Fund (NG-CDF) to set up the digital hubs in every Ward. 

With the rejection of Finance Bill 2024, the Treasury as part of budget cuts, completely defunded the Constituency Innovation Hubs putting the project in limbo.

On Saturday, July 20, the Chair of the Communication, Information and Innovation Committee John Kiarie informed the National Assembly that the project would not be abandoned. 

He revealed that Kenya had been able to partner with the World Bank to ensure that the project was actualised.

“Despite the reduction of the allocation to Constituency Innovation Hubs from Ksh377 million to zero, the construction of the hubs shall continue through the new World Bank project, which is allocated Ksh3.1 billion,” a statement from the National Assembly read in part. 

In an earlier statement, former Information, Communication and Technology (ICT) Cabinet Secretary Eliud Owalo revealed that Kenya had initiated contact with the World Bank to partner in the project. 

World Bank will now fund the President’s legacy project through its Digital Economy Moonshot project. 

The funds will not be channelled through parliamentarians under the NG-CDF structure but through the Kenya Digital Economy Acceleration Programme (KDEAP). 

Initially, Kenya had sought Ksh62.5 billion from the World Bank for the digital hubs as well as the installation of 25,000 WiFi hotspots across the country. 

Dagoretti South MP John Kiarie did not divulge if the World Bank would pump in more money apart from the Ksh3.1 billion for the Constituency Innovation Hubs.

President William Ruto envisions leveraging the hubs to ensure young Kenyans can gain meaningful employment through online jobs.