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Committee criticizes Treasury over delayed fund disbursement to state departments

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Members of the Departmental Committee on Trade, Industry, and Cooperatives have criticized the National Treasury for withholding funds allocated to state departments.

Committee Chairperson James Gakuya (Embakasi North) emphasized that approving funds for state agencies without subsequent disbursement undermines development efforts.

“We cannot approve funds for state departments only to see them withheld,” stated Gakuya during the committee’s review of the 2024/2025 Supplementary Estimates.

The committee engaged with Principal Secretaries Patrick Kiburi (Cooperatives), Susan Mang’eni (Micro, Small, and Medium Enterprises Development), and Hassan Abubakar (Investment Promotions), revealing that substantial allocations from the previous financial year remain undispersed.

Notably, these include Ksh 4.5 billion for Coffee Farmers, Ksh 350 million for warehouse modernization by the Kenya Grain Growers Cooperation Union, and Ksh 4.5 billion earmarked for County Aggregated Industrial Parks.

“As a Committee, we will hold the Treasury accountable,” asserted Gakuya, demanding the Treasury PS to provide explanations for the delays in fund disbursement.

Committee Vice Chairperson Marianne Kitany (Aldai) echoed concerns over proposed budget cuts affecting job creation initiatives.

The committee plans to further scrutinize the issue with PSs Alfred Kombudo (Trade) and Dr. Juma Mukhwana (Industry) in upcoming sessions on July 18.

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