Parliamentary Committee Accuses Treasury Of Sabotaging Key State Projects By Not Releasing Funds
Embakasi North MP James Gakuya
By PSCU
Members of the Parliamentary Departmental Committee on Trade, Industry and Cooperatives have raised concerns that the National Treasury is sabotaging key development projects by failing to release funds appropriated to State Departments.
This emerged yesterday during a meeting between the committee chaired by Embakasi North MP James Gakuya and Senior National Treasury Officials.
At the meeting, Treasury Officials led by Benard Ndungu, the Director General in charge of Accounting Services, told the MPs that a total of KSh218.5 billion was not released to five state agencies under the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs).
The State departments include Investment Promotion, Industry, Trade, Cooperatives and that of MSMEs.
“Our biggest concern as a committee is that the National Treasury has decided to kill industrialisation and the manufacturing sector by starving the state departments of funds,” said Gakuya.
Committee Vice Chairperson Marianne Kitany, on her part, wondered why the State Departments and their agencies were denied development funds, knowing very well that some of the sectors are critical in generating revenue.
“For the government to collect more revenue in the key sectors of the economy, it has to invest funds to spur growth in the various sectors. How do you project to get revenue when you are not investing?” posed Kitany.
While responding to the queries, Mr Ndungu, who was accompanied by Francis Anyona ( Director of Budget )and John Anjera (Director of Planning-Macro and Fiscal Affairs), explained that lack of funds is to blame for the situation.
“Due to the shortfall of revenue and scarcity of cash resources, the National Treasury usually apply for administrative criteria by giving priority to public debt, security, salaries, counties, social programmes such as education, health, development and flagship projects and others,” Mr Ndungu told the MPs.
Several key projects are in limbo due to the National Treasury’s failure to release allocated funds. These include the construction of six Export Promotion Zones (EPZ), each allocated Sh500 million in the last financial year, totalling KSh3 billion. So far, only KSh300 million has been released for these projects, which were directed by President William Ruto.
Additionally, KSh3.5 billion for the Coffee Cherry Fund has not been released, despite Parliament allocating KSh4 billion in the 2023/24 budget.
The Treasury also has not released KSh350 million meant for the modernization of Kenya Planters Cooperative Union (KPCU) warehouses, as allocated by the National Assembly in the Supplementary Budget II of 2023/2024.
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