The Ministry of Investments, Trade and Industry has asked Parliament to approve an additional Sh6.03 billion in the 2025/2026 financial year under Supplementary Estimates I, saying the funds are needed to support its widened role in investment promotion, trade, and industrial development.
Appearing before the Parliamentary Committee on Trade, Industry and Cooperatives on Wednesday, Cabinet Secretary Lee Kinyanjui said the Ministry’s three State Departments Investment Promotion, Trade, and Industry have recorded an increase in recurrent spending from Sh9.39 billion to Sh11.58 billion, reflecting a rise of Sh2.19 billion.
The State Department for Trade takes the largest portion of this increase, receiving an additional Sh1.05 billion.
The allocation will be used to settle financial obligations at the Kenya National Trading Corporation, host a Tripartite Summit, clear rent arrears, and support operations at the headquarters.
Lee said, “The Sh. 1,048.96 is attributed to additional allocation to settle KNTC’s financial obligation (700M), Host the Tripartite summit (Sh. 250M), Settling rent outstanding rent arrears for the RWSC 18.38 M and Sh. 100 for HQ operations.”
The State Department for Industry is also set for a boost, with an extra Sh962.47 million in recurrent expenditure.
The increase is linked to Appropriations-in-Aid adjustments affecting agencies such as the Numerical Machining Complex, Anti-Counterfeit Authority, and Kenya Industrial Training Institute.
For the State Department for Investment Promotion, an additional Sh180.67 million has been allocated to facilitate the Kenya International Investment Conference and cover salary adjustments.
“The Sh.180.67m is made up of Sh. 150m for hosting KIICO and Sh. 30.67m for additional requirement for salaries,” Kinyanjui said.
On development spending, the Ministry’s budget is expected to rise by Sh769.83 million to reach Sh9.02 billion.
A large share of this, Sh850 million, has been set aside for the Kenya Jobs and Economic Transformation project supported by the World Bank.
“The Sh. 850m for KJET World bank donor funded project,” he said.
However, the State Department for Industry will experience a reduction of Sh80.17 million in development funds due to lower donor inflows and reallocations.
“The Sh 80.17 Million variation is on account of reduction of KIEP donor funds and also CAIP allocation for Elgeyo Marakwet County,” Lee explained.
In total, the Ministry is seeking Sh6.03 billion in additional funding, combining Sh3.19 billion for recurrent expenditure and Sh2.83 billion for development.
“Kindly support us in the budgetary process and I want to assure the committee that the resources allocated to the Ministry will be utilized for the targeted and intended activities only.”
The committee is now set to review the proposals before submitting its report to Parliament as part of the Supplementary Estimates process.