Members of the Departmental Committee on Trade, Industry, and Cooperatives have expressed strong criticism towards the National Treasury for its delayed disbursement of funds allocated to state departments, stressing that such actions undermine national development efforts.
During the committee’s review of the 2024/2025 Supplementary Estimates, Committee Chairperson James Gakuya (Embakasi North) highlighted the detrimental impact of withholding approved funds. “We cannot approve funds for state departments only to see them withheld,” Gakuya stated, emphasizing the importance of timely disbursements to ensure the smooth operation and progress of development projects.
The committee’s scrutiny involved Principal Secretaries Patrick Kiburi (Cooperatives), Susan Mang’eni (Micro, Small, and Medium Enterprises Development), and Hassan Abubakar (Investment Promotions). The review revealed that significant allocations from the previous financial year remain undispersed, including:
- Ksh 4.5 billion for Coffee Farmers,
- Ksh 350 million for warehouse modernization by the Kenya Grain Growers Cooperation Union,
- Ksh 4.5 billion earmarked for County Aggregated Industrial Parks.
These delays have raised considerable concerns among committee members. “As a Committee, we will hold the Treasury accountable,” Gakuya asserted, calling for the Treasury’s Principal Secretary to provide detailed explanations for the delays.
Committee Vice Chairperson Marianne Kitany (Aldai) echoed these concerns, particularly criticizing proposed budget cuts that could adversely affect job creation initiatives. Kitany stressed the importance of ensuring that allocated funds reach their intended projects to support economic growth and employment.
To address these issues, the committee plans to continue its scrutiny with further sessions involving Principal Secretaries Alfred Kombudo (Trade) and Dr. Juma Mukhwana (Industry) scheduled for July 18. The upcoming discussions aim to clarify the reasons behind the delays and seek solutions to expedite the disbursement process, ensuring that development projects across the country are not stalled.
The committee’s persistent efforts to hold the Treasury accountable underscore the critical role of financial management in the nation’s development trajectory. The resolution of these disbursement issues is anticipated to significantly enhance the effectiveness of various state-led development initiatives, ultimately contributing to the nation’s economic progress.
