A Sh17.2 billion funding gap has put operations in Kenya’s arid and semi-arid lands (ASALs) at risk, with the State Department for ASALs and Regional Development warning that essential services could stall in the 2026/27 financial year.
Appearing before the National Assembly Departmental Committee on Regional Development on Thursday, Principal Secretary Kello Harsama said the department needs Sh28.4 billion but has been allocated only Sh11.2 billion in the 2026 Budget Policy Statement.
“We urge the Committee to consider allocating additional funds to bridge the gaps,” Harsama said, noting that the shortfall threatens service delivery in some of the country’s most vulnerable areas.
The department revealed that its headquarters has received no operational funding despite requiring Sh250 million for core administrative functions, including the offices of the Cabinet Secretary and Principal Secretary.
Other essential areas such as vehicle replacement, office furnishing, and foreign travel remain unfunded.
A further Sh240 million deficit affects the National Drought Early Warning Information System, recently transferred to the department through an Executive Order. Monitoring and evaluation, communications, and staff training remain underfunded, creating a recurring deficit of Sh752 million.
Seven semi-autonomous agencies face a Sh1.7 billion shortfall for salaries and statutory obligations, with the Lake Basin Development Authority and the Coast Development Authority among the hardest hit.
Development projects are also under threat, with a Sh9.7 billion deficit putting flagship initiatives at risk.
Key projects affected include the Ewaso Ng’iro South Development Authority-led leather factory, which needs Sh478 million to complete critical infrastructure.
Pastoralist feedlot systems, fruit tree seedling production, and irrigation schemes are also facing severe funding gaps.
Committee chairperson Peter Lochakapong questioned how headquarters-run projects, such as the proposed production of five billion tree seedlings, would be implemented since they were originally earmarked for Regional Development Authorities.
He also sought clarity on the department’s role in managing the Equalization Fund and why resources were being requested for ARTECT under the Office of the President.
Harsama explained that ARTECT, which operates from State House, was established to restore peace in conflict-prone areas such as Turkana and West Pokot counties. Discussions are ongoing to transfer the office to the department to improve operational effectiveness.
The PS warned that underfunding has crippled Regional Development Authorities, some of which have resorted to bank overdrafts to pay staff after the National Treasury reduced allocations amid proposals for their dissolution.
He cautioned that prolonged budget cuts could derail the government’s Bottom-Up Economic Transformation Agenda in ASAL regions as the Committee finalises its recommendations on the 2026 Budget.
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