The National Assembly Departmental Committee on Trade, Industry and Cooperatives, led by Ikolomani MP Bernard Shinali, has called for the fast-tracking of a proposal to merge affirmative action funds.
During deliberations on the 2026 Budget Policy Statement for the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development, Cabinet Secretary Wycliffe Oparanya accompanied by Principal Secretaries Patrick Kilemi (Cooperatives) and Susan Mang’eni (MSMEs Development) said that merging the Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Fund into a single entity would make it easier for targeted groups to access financing.
Last year, CS Oparanya announced plans to merge the three funds into the Biashara Fund, noting that the move would seal loopholes that have led to misuse.
He added that the merger aims to improve efficiency, enhance resource allocation and stop cases where individuals benefit more than once from different funds.
Committee chairperson Shinali and vice chairperson Marianne Kitany sought an update on the planned merger following concerns over the CS’s disclosure that the Uwezo Fund requires additional funding of Sh600 million.
Of this amount, Sh400 million is earmarked for the Labour Mobility (Wezesha Majuu) programme, while the rest will support the Women’s Economic Empowerment project.
“You have been on record saying the funds will be merged. What is the status? Why allocate more money to the Uwezo Fund when there is a plan to merge it with other funds?” Shinali asked.
CS Oparanya said the plan remains on course, promising to provide the committee with a detailed update on the current status of the proposal.
“We will not backtrack on consolidating the funds. This is the only way to ensure a more efficient, transparent and impactful financial support system for small businesses. It will simplify access, reduce bureaucracy and prevent duplication,” Oparanya said.
The CS informed lawmakers that the State Department for MSMEs Development has a funding gap of Sh12.417 billion, while the State Department for Cooperatives has a funding gap of about Sh7.816 billion.
He noted that these shortfalls are substantial and could significantly limit the implementation of key programmes if not addressed.
Oparanya requested the lawmakers, “I request this Committee to support the Ministry in addressing the funding gaps so that we can fully implement our mandate and accelerate national economic transformation.’’
