Members of the Departmental Committee on Trade, Industry, and Cooperatives have criticized the National Treasury for its failure to release funds allocated to various State departments.
Chairing the committee, James Gakuya (Embakasi North) highlighted that, despite the budget approvals for several projects, the funds have yet to be disbursed. “There is no point in our committee approving allocations if the Treasury does not release the finances,” Gakuya stated, emphasizing the committee’s frustration with the situation.
He has called for Treasury Principal Secretary Chris Kiptoo to appear before the committee to explain the delays in fund disbursement. This discussion took place during the committee’s review of the Supplementary Estimates No. 1 for the 2024/2025 fiscal year.
During a session with Principal Secretaries Patrick Kiburi (Cooperatives), Susan Mang’eni (Micro Small and Medium Enterprises Development), and Hassan Abubakar (Investment Promotions), it became clear that significant funds remain undistributed, despite prior approvals. This includes Sh4.5 billion designated for Coffee Farmers under the Cherry Fund program, Sh350 million allocated for the modernization of warehouses at the Kenya Grain Growers Cooperation Union, and Sh4.5 billion intended for the construction of County Aggregated Industrial Parks across 18 counties.
Vice Chairperson Marianne Kitany (Aldai) expressed concern over proposed cuts to the development budgets by the three state departments, warning that such reductions could lead to job losses for young people.
The committee is set to hear further submissions from PSs Alfred Kombudo (Trade) and Juma Mukhwana (Industry) regarding the Supplementary Estimates on Thursday.