The State Department for Shipping and Maritime Affairs has appealed to Parliament to increase its 2026/27 budget allocation by Sh3.294 billion, warning that the current funding shortfall could significantly slow down the growth of Kenya’s maritime sector and undermine employment opportunities for thousands of young people seeking jobs in the global shipping industry.
Appearing before the George Kariuki led-committee on Transport and Infrastructure, Principal Secretary Aden Millah told the MPs that the department’s 2026 Budget Policy Statement requires Sh9.677 billion to effectively implement its programmes in the 2026/27 financial year.
The Budget Policy Statement ceiling has allocated only Sh6.383 billion, creating a funding deficit of Sh3.294 billion, which the department is now seeking Parliament to approve as an additional allocation.
The PS told the lawmakers that several strategic national projects are at risk due to underfunding, including the Construction of the Survival Training and Certification Centre at Bandari Maritime Academy, the Lake Turkana Maritime Transport and Investment Project, and the Kenya Lake Victoria Maritime Communication and Transport Project.
The Sh166 million allocated for the Survival Training and Certification Centre is significantly below the required Sh1.365 billion, potentially delaying completion of the facility designed to provide critical sea survival skills and increase the number of trained Kenyan seafarers from about 5,000 to over 20,000 annually.
Similarly, the PS said that the Lake Turkana Maritime Transport and Investment Project has received only Sh100 million against a requirement of Sh500 million.
The allocated funds will only support preliminary planning and design work and will not be sufficient for the construction of the Maritime Search and Rescue Coordination Centre.
PS Millah affirmed that, “The State Department continues to face significant budgetary and resource constraints that have adversely affected the implementation of its programmes and mandates. Underfunding has limited the Department’s ability to effectively support and sustain ongoing maritime projects, thereby constraining service delivery and the fulfilment of national priorities, including obligations arising from international agreements.”
In the creation of employment, the PS said that the department intends to train 23,000 seafarers and facilitate the recruitment of 14,900 into the global maritime labour market over the medium term as part of efforts to address unemployment and position Kenya as a leading supplier of maritime labour internationally.
The PS said that insufficient financial resources have affected the government’s ability to negotiate partnerships with international shipping companies and maritime administrations.
“Additionally, inadequate funding has curtailed the Department’s capacity to facilitate employment and job creation initiatives for Kenyan youth in the maritime industry,” Millah said.
Kenyan seafarers continue to face labour challenges that affect their welfare and career progression. These include limited access to shore leave, complex transfer and transit processes, and frequent labour disputes.
“Limited access to shore leave, cumbersome transfer and transit processes, and frequent labour disputes continue to affect their well-being.”
At the same time, PS Millah said that the department is also pushing for urgent legislative reforms to modernize the maritime sector and align Kenya’s regulatory framework with international maritime standards where he proposed amendments to the Merchant Shipping Act and the Kenya Maritime Authority Act which he said that they will strengthen oversight, address emerging issues such as digitalization and environmental regulation, and support institutional development.
PS Millah pointed out that low public awareness of maritime opportunities, lack of mandatory shipboard training, inadequate technical staff, and limited participation of Kenya’s national carrier in the global shipping industry were also cited as major constraints.
"Inadequate funding has curtailed the Department’s capacity to facilitate employment and job creation initiatives for Kenyan youth in the maritime industry. This has reduced opportunities for skills development, international placement, and workforce integration that would otherwise arise from strengthened global partnerships and agreements,’’ Millah said.
The State Department now wants MPs to approve additional funding to support policy development, maritime education and training, international partnerships, and implementation of strategic initiatives such as Project Mashariki aimed at expanding national shipping capacity and regional connectivity.
“These interventions are critical to unlocking the full potential of the maritime sector as a key driver of economic growth, trade facilitation, and employment creation,” Millah said.
According to the PS, approval of the additional Sh3.294 billion sought by the department is expected to accelerate implementation of ongoing maritime projects, enhance training capacity, create employment opportunities for Kenyan youth, and strengthen Kenya’s competitiveness in the global shipping industry.
