The national government has allocated KSh4.45 billion in the current financial year to fully fund County Aggregation and Industrial Parks (CAIPs) in 24 counties, targeting completion by June 2026.
The government aims to accelerate stalled projects and advance its plan to promote local manufacturing and value addition through county-based industrial hubs launched in 2023.
Earlier, the government fully funded CAIPs in 10 counties for the year ending June 2025, but none of the facilities has been completed. According to the State Department for Industry, progress varies widely, with Meru at 92 per cent completion, Embu 83 per cent, Kirinyaga 81 per cent, Migori 80 per cent and Garissa 79 per cent. Each park is budgeted at Sh500 million, financed equally by the national and county governments.
A recent Parliamentary Budget Office (PBO) report confirms full funding for CAIPs in Meru, Embu, Kirinyaga, Migori, Garissa, Busia, Machakos, Uasin Gishu, Bungoma and Homa Bay by June 2025. The report indicates that the programme will prioritise completion in another set of 24 counties in FY 2025/26, building on last year’s financing.
Once released, the new allocation will bring the number of fully funded counties for CAIP construction to 34.
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Of the 24 counties scheduled this year, 12 will receive the full Sh250 million national share: Tana River, Marsabit, Kitui, Kericho, Baringo, Kilifi, Nyeri, Laikipia, Nyandarua, Kajiado, Vihiga and Narok. The remaining 12; Nakuru, Nandi, Nyamira, Mombasa, Murang’a, Siaya, Trans Nzoia, Kiambu, Kisii, Wajir, Kwale and Kakamega, will receive amounts ranging from Sh50 million to Sh133 million, reflecting staged funding to support ongoing works and capacity.
National transfers to counties also cover programmes beyond CAIPs, including construction of county headquarters, the Community Health Promoters Programme, and Phase II Doctors’ Salary Arrears. Despite the expanded support, the PBO notes that 13 counties have not yet started their CAIP projects: Bomet, Elgeyo/Marakwet, Isiolo, Kisumu, Lamu, Mandera, Makueni, Nairobi, Samburu, Taita-Taveta, Tharaka-Nithi, Turkana and West Pokot.
The funding plan is expected to unblock delays and push industrial parks toward completion across counties.
By Masaki Enock
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