The Budget and Appropriations Committee has raised concerns over the declining absorption of the development budget, warning that inefficiencies in project execution could undermine Kenya’s socio-economic growth. The Committee chair emphasized that addressing bottlenecks and enhancing coordination with development partners is critical to ensuring that allocated funds are fully utilized to impact priority sectors, particularly those aligned with the Fourth Medium-Term Plan of Vision 2030. Special focus, he noted, should be placed on programs benefiting youth, women, and persons with disabilities.
The MP highlighted that parliament expects the 2026-2027 budget to support the Bottom-Up Economic Transformation Agenda (BETA) through targeted development expenditure in key sectors, including agriculture, health, education, and infrastructure. He added that proper allocation and utilization of resources are essential for achieving the objectives of BETA and ensuring equitable development across the country.
To address inefficiencies in service delivery, Parliament, through a resolution of the Budget and Appropriations Committee, has directed the Intergovernmental Technical Relations Committee (IGRTC) to unbundle devolved functions that are still being implemented by the national government. “This directive aims to curb unnecessary duplication of functions between the national and county governments, particularly in the Health, Agriculture, Water, and Infrastructure sectors,” the legislator explained.
The MP further urged that the Division of Revenue Bill, 2026, include provisions to guarantee that devolved resources presently held by the national government are appropriately allocated to counties. He called on the National Treasury and Sector Working Groups to ensure prudent allocation of national resources, avoiding overlaps with county functions to enhance service delivery, optimize resource use, and strengthen the devolved system of governance as envisioned in the Constitution.
He also highlighted external economic challenges, noting disruptions in global trade caused by U.S. tariffs and other protectionist measures, which have affected Kenya’s key exports such as tea, coffee, and cut flowers. To mitigate these impacts, he urged the government to diversify export markets, strengthen regional trade partnerships under the African Continental Free Trade Area (ACFTA), and promote value addition in agriculture and manufacturing.
The legislator warned that public debt service costs, projected to exceed Sh1 trillion next fiscal year, add pressure to government finances, making efficient budget utilization even more critical for sustaining economic stability and fostering growth.
