Members of the Trade, Industry and Cooperatives Committee have rejected a plan by State Department of Investment Promotion to reallocate Sh200 million from the Export Processing Zone Authority (EPZA).
Led by the chairperson James Gakuya (Embakasi North), members faulted the State Department for initiating the move to redistribute the funds, without consulting the House Team which oversights the Ministry of Investments, Trade and Industry.
Investment Promotion PS Hassan Abubakar while apprising the MPs regarding on the status of flagship projects being implemented by the department, admitted that he had initiated the move after consulting the National Treasury.
Abubakar told the MPs he had written a letter to the National Treasury seeking the redistribution of the Sh200 million that had been allocated to EPZA in Supplementary Budget 1 of the 2024/2025 fiscal year.
According to Abubakar, he had suggested in his letter that Sh50 million will be retained by EPZA, while Sh100 million should go to Kenya Investment Authority (KenInvest) and the balance of Sh50 million should go to the Special Economic Zones Authority (SEZA).
His revelation attracted sharp reactions from the lawmakers, with Gakuya and committee vice chair Marianne Kitany (Aldai) noting that it is only Parliament that has power to appropriate funds.
“There is no other entity apart from Parliament that appropriates funds to state departments. You ought to have consulted this committee first. There is absolutely no justification to bypass this committee,” said Gakuya.
Kitany explained that the right process would have been for the state department to come to the House and make a request.
“If there is a need for any appropriation of money, state departments come to Parliament. If the request is not captured during the budget-making process, there is a window to ask for the same during the supplementary budget process,” explained Kitany.
The PS, responding to the concerns by the lawmakers acknowledged by-passing Parliament, but noted that as the accounting officer, he felt the move was for the common good of the state agency.
“During the supplementary Budget 1, we requested money for KenInvest and SEZA, but the two entities who are in actual need did not get the finances. I requested for the reallocation to enable the two bodies to stay afloat and pay salaries for their staff,” he said.
“The good thing is that the cash has not yet been redistributed by the National Treasury. I will write to them and instruct that the cash be retained by EPZA,” added the PS.
