Thursday, 15 May, 2025
Committee on Trade concludes consultations with state departments on budget estimates
Bunge Towers, Nairobi CountyThursday, March 6, 2025
The National Assembly Trade, Industry, and Cooperatives Committee has concluded discussions with heads of state departments under its purview on their Budget Estimates for the 2025/2026 financial year.
Led by Chairperson Hon Bernard Shinali (Ikolomani), the committee today engaged Principal Secretaries Dr. Juma Mukhwana (Industry), Hassan Ababukar (Investment Promotion), and Regina Ombam(Trade) on their respective revenue and expenditure estimates.
PS Mukhwana told members of the committee that his state department has shortfall of Sh610 million in its development budget.
He explained that the department has an allocation of Sh8.679 billion in the current fiscal year estimates of revenue and expenditure, against a Sh9.132 billion in the 2025 Budget Policy Statement.
" The variance of Sh610.2 million in the development budget will affect the completion of ongoing projects geared towards job creation, value addition and promotion of economic growth," stated Dr Mukhwana.
According to the PS, some of the incomplete projects include the construction and equipping of research laboratories at KIRDI and the County Aggregation Industrial Parks among others .
Hon Shinali and Committee Vice Chairperson Hon Marianne Kitany (Aldai ) led the members in demanding that the government should consider completing the pending industrial parks before starting new ones.
" For Kenyans to get value for money, the ongoing Industrial park projects need to be completed first before starting news ones," said the Chairperson, a position that was echoed by other members.
Hon Kitany suggested that the government should consider letting devolved units and other partners to Fund and manage the parks in the counties .
PS Mukhwana while briefing the lawmakers on the project revealed that the ambitious plan to establish industrial parks in 18 selected counties has been hindered by a lack of funds, with most of the projects still incomplete.
While making their submissions PS Abubakar revealed that his state department has been allocated Sh2.13 billion for development in the current budget, against a requirement of Sh12.6 billion for the same.
" This translates to a shortfall of Sh10.46 billion for development . The budgeting gap will have heavy impact affecting implementation of planned projects and completion period," he said.
His revelation elicited sharp reactions from committee members , who raised concerns as to why money gets allocated to projects but they still remain incomplete.
PS Ombam while making her presentation said that the state department requires Sh500 million that will be pumped to the operationalization of the CAIPS projects in the counties.
The Committee directed that the State department work with the Industry State Department and come up with an harmonized amount that can be allocated to the same project.