President William Ruto during the commissioning parade of 309 cadets at the Kenya Military Academy in Lanet, Nakuru County on April 16, 2025.
President William Ruto’s ambitious plan on development is at risk due to budget cuts affecting trade, industry, and investment dockets in the year to June 2026.
This after the State Departments under the Ministry of Trade, Industry, and Investments raised serious concerns over the huge funding shortfalls in the financial year starting July 1, 2025.
The Principal Secretary Abubakar Hassan Abubakar (Investment), Juma Mukhwana (Industry), and Regina Ombam (Trade) told Parliament that the departments received a paltry Sh2.13 billion for development in the year to June 30,2023.
“However, my ministry needs Sh12.6 billion. This leaves a gap of Sh10.46 billion, Mr Abubakar, the Investment Promotion Principal Secretary said.
“This will seriously affect project implementation and delay completion of planned projects.”
His remarks triggered concern from the National Assembly’s committee on Trade, Industry, and Investments who raised concerns over budget shortfalls for the critical sector.
The lawmakers led by Mr Shinali questioned why projects spearheaded by the Ministry have remained incomplete despite budgetary allocations.
Principal Secretaries Juma Mukhwana (Industry), Hassan Abubakar (Investment Promotion), and Regina Ombam (Trade) appeared before the National Assembly’s Trade, Industry, and Cooperatives Committee to defend their respective budgets for the year to June, 30, 2026.
The PS's appeared before the National Assembly’s committee chaired by Mr Shinali, to defend their budget estimates for the 2025/26 financial year last Thursday.
Dr Mukhwana told the committee that his department faces a shortfall of Sh610 million in the development budget.
He said the department budget has been allocated Sh8.679 billion, compared to Sh9.132 billion that was proposed in the 2025 Budget Policy Statement (BPS).
“The Sh610.2 million gap will delay ongoing projects. These include initiatives focused on job creation, value addition, and economic growth,” he said.
Some affected projects include research laboratories at the Kenya Industrial Research and Development Institute (KIRDI), and County Aggregation and Industrial Parks (CAIPs).
Mr Shinali and Vice Chairperson Marianne Keitany (Aldai) said the government should finish ongoing industrial park projects before launching new ones.
“To get value for money, we must complete the existing projects first,” Mr Shinali said.
Ms Keitanyi asked the county governments and private partners to be allowed to fund and manage the county parks.
Dr Mukhwana said plans to build industrial parks in 18 counties have stalled due to lack of funds. Most projects remain incomplete.
He told the committee that his department faces a shortfall of Sh610 million in the development budget.
Investments PS, Ms Ombam, said her department needs Sh500 million to operationalise Constituency Agricultural Industrial Parks (CAIPs) in counties.
The committee directed her department to coordinate with the Industry State Department and propose a joint budget for the project.
The committee will meet this morning (Monday) with the PSs from the State Department for Cooperatives and Micro, Small and Medium Enterprises.
