State takes control of Sh2.45bn Industrial Parks machinery purchase

County governments are set to lose control over the purchase of machinery for their industrial parks after the national government scrapped an earlier arrangement that would have given devolved units direct access to Sh2.45 billion earmarked for the exercise.

The State Department for Industry has opted to handle the procurement centrally, placing the responsibility for acquiring equipment under the national government rather than allowing individual counties to spend the allocations on their preferred machinery.

The change marks a major shift in the implementation of the County Aggregation and Industrial Parks (CAIPs) programme, with the ministry now expected to determine how the equipment will be sourced and guide what is installed in the facilities.

Principal Secretary for Investment Promotion Abubakar Hassan Abubakar revealed the new arrangement while appearing before the National Assembly Committee on Trade, explaining that the initial plan to release the money directly to counties had been abandoned.

“We were initially to disburse the funds to the counties but we have just reversed that, we will a ministry jointly acquire the equipment,” said Abubakar.

The Sh2.45 billion had been allocated for the acquisition of machinery to equip the industrial parks, which are intended to provide processing facilities for agricultural produce and other raw materials available in different regions.

Abubakar said the government had already released Sh8.5 billion to 34 counties to facilitate construction of the facilities, completing its financial commitment of Sh250 million per county towards the projects.

With construction funding already channelled to the devolved units, the State Department is now preparing to move to the equipment installation stage, targeting at least 17 counties in the initial phase.

However, the progress report presented to MPs revealed considerable differences in the pace of construction, with just seven counties having completed more than 90 per cent of their projects.

“So, we have completed our part of disbursement for 34 counties, and now we want to start equipping at least 17 counties. Chair, so far, out of the 34 counties which have been given the money, there are only 7 counties which are more than 90 per cent complete,” said the PS.

Meru and Wajir have finished construction of their industrial parks, while Kirinyaga has attained 92 per cent completion. Nyeri stands at 91 per cent, Kisii at 92 per cent, while Embu and Garissa have each reached 90 per cent.

Machakos is also among the counties progressing with the programme, with its facility reported to be 77 per cent complete.

The figures prompted MPs to question the pace of implementation and the level of accountability surrounding the money released to county governments.

Aldai MP Marianne Kitany sought to establish how the ministry was monitoring the use of the Sh250 million allocated to each county, warning that the funds needed to be protected from diversion to unrelated activities.

She challenged the State Department to explain the safeguards in place to ensure the money was being spent strictly on the construction and development of the industrial parks.

“what role does the State Department have in terms of oversight, to ensure that government money is not misdirected to other operations,” asked Kitany.

Committee chair and Ikolomani MP Bernard Shinali, meanwhile, questioned whether the ministry had considered the varying production needs of individual counties when planning the purchase of machinery.

He argued that equipment requirements should be determined by the agricultural commodities available in each region rather than applying the same procurement model across all the facilities.

“Every area has a different need. The requirements for tomatoes, potatoes and rice are different. Have you considered the specific needs of each region?”

The industrial parks are expected to house common-user facilities where farmers, traders and small businesses can process locally produced commodities and other raw materials before taking them to market.

This means counties whose economies depend on crops such as tomatoes, potatoes and rice will require machinery suited to handling, processing and storing their respective products.

The question of matching equipment to local production has become particularly important as the government prepares to take charge of procurement, with MPs also seeking assurances that the machinery will not arrive before the facilities are ready for use.

Lawmakers questioned whether the equipment would be installed in time for the parks to become operational, given that several counties are still completing construction works.

The CAIPs programme is intended to bridge the gap between agricultural production and manufacturing by providing facilities where raw materials can be processed near their sources.

By enabling farmers and small enterprises to add value to their produce within their counties, the initiative is expected to support local manufacturing and reduce the need to transport unprocessed commodities over long distances.

However, the latest procurement changes have placed the national government at the centre of the equipment acquisition process, even as questions persist over county preparedness, project supervision and the suitability of machinery selected for the different regions.