NAIROBI, Kenya, May 21-State Department for Industry is seeking an additional Sh6.978 billion in the 2026/27 financial year to bridge funding gaps which it contends is affecting industrial projects, operations, and flagship manufacturing programmes.
The request would increase the department’s total funding requirement from Sh10.424 billion in FY2025/26 to about Sh17.402 billion in FY2026/27, driven largely by infrastructure development and operational pressures across industrial agencies.
Appearing before Parliament’s Trade, Industry and Cooperatives Committee, Principal Secretary Juma Mukhwana said the additional funds are critical to prevent delays in key projects and ensure completed industrial facilities are fully operationalized.
He said the Sh6.978 billion gap comprises Sh2.051 billion in recurrent expenditure needs and Sh6.186 billion in development funding requirements, with priority areas spread across industrial parks, research institutes, and training institutions.
A major portion of the request; Sh3.75 billion; is directed at County Aggregation and Industrial Parks (CAIPs).
Of this, Sh2.75 billion is earmarked for equipping completed parks with machinery, while Sh1 billion will support operationalization, including investor forums, market development, policy support, and capacity building.
The department warned that without this funding, several completed parks risk becoming underutilized despite heavy investment.
The Kenya Industrial Research and Development Institute (KIRDI) is seeking about Sh2.47 billion, including Sh1.6 billion to complete the South B Techno Centre, Sh841 million to clear pending bills and funding gaps, and Sh210.7 million for flood damage recovery that destroyed equipment, vehicles, and infrastructure.
The Kenya Accreditation Service (KENAS) is requesting Sh195.9 million for office rent, staff emoluments, and medical insurance, citing expanded regulatory duties and rising demand for accreditation services.
At the Kenya Industrial Training Institute (KITI), Sh40 million is sought for a modern security gate and a 72-seater bus to support industrial training and field exposure.
The Kenya Leather Development Council (KLDC) requires Sh995 million to complete the Leather Industrial Park, including key facilities such as an administration block and training center.
KIRDI also seeks Sh67 million for asbestos removal to meet safety standards.
On the recurrent side, Sh2.05 billion is required for headquarters operations, regional offices, and audit functions, with officials warning that current allocations are constraining service delivery.
The department says the funding aligns with Vision 2030 and BETA goals to boost manufacturing, value addition, and industrial growth.
