Treasury set to slash Cooperatives Ministry budget by KSh959 million

Cooperative PS Patrick Kilemi

The Principal Secretary for Cooperatives Patrick Kilemi has urged parliament to consider additional of funds to ministry for successful implementation of reforms.

The PS had led a team from the State Department for Cooperatives to a meeting with the National Assembly Committee on Trade, Industry and Cooperatives chaired by Embakasi North MP James Gakuya recently.

The team presented the Supplementary Estimates II for Financial Year 2023/2024 and submissions for Financial Year 2024/25 Financial Year Revenue and Expenditure and appealed to them to increase allocation, noting that any reduction could greatly hamper the delivery of services.

The PS who represented Cabinet Secretary, Ministry of Co-operatives & Micro, Small and Medium Enterprises( MSMEs) Simon Chelugui indicated that the State Department for Micro, Small and Medium Enterprises recurrent estimates for FY 2024/25 have undergone a massive cut of KSh959 million which he said will affect critical and foundational activities of the department.

He urged Parliament to revert earlier ceiling that they will be proposing for smooth execution of recurrent activities.

The PS  requested the legislators to consider the ongoing reforms in the State Department which requires a wide range of public sensitization to ensure successful implementation of the Government’s Bottom- Up Economic Transformation Agenda (BETA).

He noted changes in the estimates FY 2024/2025 recurrent expenditure have increased by KSh2 billion  under the Coffees Cherry Advance Revolving Fund (CCARF), however the allocation to BETA value chain and promotion of coffee has been reduced by almost half.

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The PS pointed out that this will affect activities for mobilisation of members into cooperatives along BETA value chains.

He observed that the estimates indicated the loss of entire allocation of KSh20 million for monitoring and evaluation expenditure. He noted that, “This will definitely cripple internal oversight and non-financial reporting of achievements in work plans, programs and projects.”

The development vote estimate has been reduced by KSh167 million and will negatively affect three key projects at the state department.

The PS was accompanied by the Commissioner for Cooperatives David Obonyo, New KCC Managing Director Nixon Sigey, New KPC Managing Director Timothy Mirugi, Sacco Societies Regulatory Authority (SASRA) CEO Peter Njuguna among other officials.

By Obegi Malack

obegimalack@gmail.com

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