Kenya, April 19 -- The Kenyan government, through the Ministry of Transport, has stopped its big plan to build 10,000 kilometers of rural roads after spending nearly Sh30 billion to finish just 172 kilometers, officials announced today.

The project was originally funded by loans that ended up being very expensive, so the government decided to stop using this loan system.

Instead, future road construction will be paid for from the national budget, according to a statement from the Ministry of Transport.

This project was started to help improve connections in rural areas and boost economic growth, but it faced a lot of criticism because of slow progress and rising costs.

The decision to cancel the project comes as people are starting to question Kenya's ability to handle its debt and how it spends money.

The main problem with funding was the high cost of the loans. These loans were taken from international lenders and had high interest rates and strict repayment conditions.

With only 172 kilometers completed, the Sh30 billion spent-about $230 million-showed problems and extra costs, raising doubts about whether the project was worth it.

The government mentioned the growing debt as a big reason for stopping the loan plan, especially since Kenya has a national debt of over $80 billion, much of which is owed to foreign lenders.

Also, the project faced delays because funds were not given out on time, which increased costs because of the longer construction periods. There were also claims of mismanagement and corruption, with critics saying there was not enough oversight and that contracts were overpriced.

Relying on loans also made the project vulnerable to risks from currency changes, as paying back loans in foreign currencies became more expensive when the Kenyan shilling lost value.

By switching to budget funding, the government hopes to reduce its reliance on borrowing from outside sources and make road construction match the money it has available.

However, this new way of funding has its own challenges, like having limited money available when there are also important needs in health care, education, and paying debts.

Experts warn that without more ways to earn money or support from donors, building rural roads through the national budget could take longer or lead to projects that are not finished.

Published by HT Digital Content Services with permission from Bana Kenya.