Lawmakers have put the National Treasury in the spotlight claiming it failed to release money to fund critical projects amounting to Sh218.5 billion in the 2023/2024 financial year.
National Treasury officials, including Director General of Accounting Services Bernard Ndungu, Director of Budget Francis Anyona, and Director of Planning-Macro and Fiscal Affairs John Anjera, were questioned by MPs over the lack of disbursement to the affected departments.
The Sh218.5 billion shortfall includes Sh10.4 billion meant for development budgets across five State Departments: Industry, Investment and Promotion, Trade, Co-operatives, and Micro, Small, and Medium Enterprises (MSMEs). These funds were intended to spur economic growth.
During a meeting with the National Assembly Committee on Trade, Industry, and Cooperatives, MPs expressed concern that Ministries, Departments, and Agencies (MDAs) are struggling due to the lack of critical funding.
Committee chairperson and Embakasi North MP James Gakuya (pictured) criticised the Treasury, accusing it of undermining industrialisation by withholding funds from the Coffee sector and County Aggregation Industrial Parks (CAIPs). He emphasised the importance of directing funds to areas that generate revenue and jobs.
Kill industrialisation
Said Gakuya: “The committee’s biggest concern is that it looks like Treasury has decided to kill industrialisation by starving the Coffee sector and County Aggregation Industrial Parks (CAIPs) of funding. If we do not put money where it is required to generate revenue and jobs, what are we doing as a country.” Aldai MP and Committee Vice Chairperson Maryanne Keitany questioned why Semi-Autonomous Government Agencies (SAGAs), despite their critical role, were not allocated adequate funds.
She pointed out that only 29 per cent of the approved development budget for the five State Departments was disbursed, despite Parliament approving their annual allocation. Keitany also criticised the Treasury for failing to meet revenue projections, accusing it of misleading the President by launching projects that would not be funded.
Vihiga Women Representative Beatrice Adagala suggested there was a deliberate attempt to undermine SAGAs by denying them necessary funding.
