State Department for Cooperatives has Ksh7.816 Billion shortfall, Oparanya says

The Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Wycliffe Oparanya has revealed that the Ministry grappling funding gaps, calling on Members of the Committee on Trade, Industry and Cooperatives to support in addressing the shortfall.

Oparanya who was speaking before the committee on Monday said the State Department for Cooperatives has a funding gap of about Ksh7.816 billion while that of MSMEs Development has a funding gap of Ksh12.417 billion.

He said the committee should support the Ministry so that it can fully implement its mandate and accelerate national economic transformation.

“These funding gaps are substantial and will greatly limit the implementation of key programmes if not addressed,” said the CS.

The committee held the meeting to discuss the 2026 Budget Policy Statement for the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development and also fast-tracking of a proposal to merge affirmative action funds.

Committee Chairperson and Ikolomani MP Bernard Shinali further suggested the merging the Uwezo Fund, Youth Fund and Women Enterprise Fund into one entity, saying that the move will make it easier for targeted groups to access financing.

Last year, CS Oparanya announced that the three funds would be merged to form the Biashara Fund.

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Oparanya said the move would seal loopholes that have led to misuse. He noted that the merger aims to improve efficiency, enhance resource allocation and stop cases where individuals benefit more than once from different funds.

During the meeting, Shinali and Committee Vice Chairperson Aldai MP Marianne Kitany led members in demanding for an update on the planned merger.

Their concern followed the CS’s disclosure that the Uwezo Fund requires additional funding of Ksh600 million. Of this amount, Ksh400 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 questioned.

In response, CS Oparanya said the plan is still on course. He promised to provide the committee with a detailed update on the current status of the proposal.

By Obegi Malack

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