President William Ruto’s ambitious push to expand digital connectivity to far-flung regions is facing a major setback, with two flagship programmes recording dismal absorption rates of budget allocations.
According to the Controller of Budget report, the Last Mile County Connectivity Network Project Phases IV and V and the Kenya Digital Economy Acceleration Project recorded just one per cent and three per cent respectively in the first half of the 2025-26 financial year.
The low uptake of funds raises fresh concerns over the government’s ability to translate policy ambition into actual infrastructure, particularly at a time when digital access is central to service delivery, education, and economic inclusion.
The LMCCP, one of the government’s cornerstone ICT initiatives, is designed to expand internet connectivity to public institutions across all 47 counties. Phases IV and V, which were launched in November 2023, build on earlier groundwork by leveraging the National Optic Fibre Backbone Infrastructure to extend broadband access deeper into rural Kenya.
The project targets hundreds of sites, including sub-county government offices, primary and secondary schools, and other public institutions, with the goal of enhancing access to government services and bridging the digital divide.
While launching the proect, Head of Civil Service and Chief of Staff Felix Koskei said phase IV would see connection of 455 sites, both primary and secondary schools, across various government offices at the county headquarters.
The phase also included the installation of 78km of fibre optic cable and the rollout of indoor and outdoor Wi-Fi hotspots to improve public internet access.
Phase V, on the other hand, targets 660 sites across 110 sub-counties, particularly in remote and underserved areas. The plan involves deploying an additional 102km of fibre optic infrastructure, and strategically positioning Wi-Fi hotspots to drive innovation and economic participation at the grassroots level.
The LMCCP is anchored in the Bottom-Up Economic Transformation Agenda, the Kenya Kwanza government’s blueprint for stimulating economic activity and improving service delivery through technology.
However, the latest budget implementation data paints a worrying picture. With an absorption rate of just one per cent, the LMCCP is effectively at a standstill..
Similarly, the Kenya Digital Economy Acceleration Project has only managed to absorb three per cent of its allocated funds, signalling equally slow progress for yet another key pillar in the country’s digital transformation strategy.
The underperformance of these projects stands in stark contrast to overall spending trends within the State Department for ICT and Digital Economy, which recorded an average absorption rate of 32 per cent.
While administrative and e-government functions showed relatively stronger performance at 48 per cent and 43 per cent respectively, development-focused programmes lagged significantly.
The disparity suggests that while recurrent expenditure and operational functions are absorbing the budget allocations, the development expenditure projects are struggling to get off the ground.
This comes against the backdrop of a shrinking budget. The State Department for ICT and Digital Economy was allocated Sh16.19 billion in the 2025-26 financial year, down from Sh20.00 billion in the previous year.
The reduced funding, combined with low absorption, risks compounding delays and undermining the impact of ongoing projects.
The the slow pace of implementation of the projects risks undermining the delivery on President Ruto’s pledges, even as the country moves towards the 202y elections.
The Kenya Kwanza Manifesto identified the “Digital Superhighway” as a key pillar for economic transformation, pledging to foster a digital economy through enhanced connectivity.
The manifesto particularly promised to increase the reach of the fiber optic cable up from 10,000km to 100,000 km, and 25,000 free public Wi-Fi hotspots in markets, trading centers, and other public areas to facilitate e-commerce and local business.
Delays in connecting schools, government offices, and rural communities could thus mean more millions of Kenyans will remain locked out of digital services, including e-government platforms and digital financial systems.
It also threatens to stall progress on the government’s economic goals tied to digital inclusion, such as job creation in the ICT sector, growth of digital enterprises, and improved efficiency in public service delivery.
