Three Principal Secretaries at the Ministry of Investments, Trade and Industry have warned that President William Ruto’s Bottom-Up Economic Transformation Agenda (Beta) projects under the ministry risk stalling following budget reductions of Sh11.6 billion by the National Treasury.
The PSs — Dr Juma Mukhwana (Industry), Mr Hassan Abubakar (Investments) and Ms Regina Ombam (Trade) — made the revelations separately when they appeared before the Trade, Industry and Cooperatives Committee of the National Assembly over their 2025/26 budgetary allocations.
PS Abubakar told the committee chaired by Ikolomani MP Bernard Shinali that his State Department has been allocated Sh2.13 billion for development in the next financial against a requirement of Sh12.6 billion provided in the approved 2025 Budget Policy Statement (BPS), leaving a financing gap of Sh10.5 billion.
“This will seriously affect the Beta projects’ implementation as well as delay their completion,” Mr Abubakar told the committee.
The top officials’ fears triggered concerns among the committee members, who had questioned why government projects remain incomplete despite budgetary allocations.
The shortfalls have an impact on the Economic Stimulus Programmes (ESP) that aim to boost the country’s economy by supporting small-scale traders and fostering Micro, Small and Medium Enterprises (MSMEs) growth specifically in areas like agriculture, infrastructure and trade.
Dr Mukhwana said that the Industry State Department faces a shortfall of Sh610 million in the development budget. His department has been allocated Sh8.679 billion, which is a reduction of the Sh9.13 billion that had been proposed in the BPS.
“The shortfall will delay ongoing projects. These include initiatives focused on job creation, value addition, and economic growth,” said Dr Mukhwana.
The PS revealed that other than the research laboratories at the Kenya Industrial Research and Development Institute (Kirdi), the County Aggregation and Industrial Parks (CAIPs) will greatly be affected by the budget shortfalls.
Mr Shinali and his Vice Chairperson Marianne Kitany (Aldai MP) challenged the government to finish the ongoing industrial park projects before launching new ones.
“To get value for money, we must complete the existing projects first. Launching new projects before the ongoing ones are completed at a time when the country is facing difficulties mopping up resources to finance its operations, is not a good idea,” said Mr Shinali.
Ms Kitany suggested that county governments and private partners be allowed to fund and manage their own industrial parks.
About Sh3 billion has been allocated from the national government to 21 counties under the industrial parks programme, a key initiative under the president’s pet bottom-up agenda for the country.
The distribution is determined by outstanding balances from previous funding from the national government and the progress of ongoing projects.
But one key condition to participating counties is that they must contribute Sh250 million to complement the national government's funding.
Dr Mukhwana confirmed that plans to build industrial parks in 18 counties have stalled due to lack of funds as most projects remain incomplete.
PS Ombam told the MPs that her department faces a shortfall of Sh500 million to operationalise industrial parks in the counties.
The committee directed her department to coordinate with the Industry State Department and propose a joint budget for the project.
