Senators push for suspension of Sh23.5 billion parks project over planning concerns
So far, only 16 counties have completed the first phase of the project, even though all counties were expected to benefit.
The rollout of President William Ruto’s Sh23.5 billion industrial parks project has slowed down, with senators raising alarms over budget cuts, incomplete plans, and a lack of proper consultation with counties.
The County Aggregation and Industrial Parks (CAIPs) project, launched to boost value addition in agriculture, is now facing questions over how funds have been used and whether counties were properly involved from the start.
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Trade Cabinet Secretary Lee Kinyanjui told the Senate Trade and Investment Committee that while the idea behind the project is solid, some early steps were missed.
“We acknowledge that some steps were omitted, but the broad conceptualisation of the project is sound,” he said.
Kinyanjui added that a new master plan is being developed to guide future activities and that procurement reforms are in progress to avoid similar mistakes.
So far, only 16 counties have completed the first phase of the project, even though all counties were expected to benefit.
These include Busia, Bungoma, Nakuru, Trans Nzoia, Migori, Homa Bay, Siaya, Kisii, Nyamira, Meru, Garissa, Mombasa, Machakos, Uasin Gishu, Kirinyaga, and Embu.
The project is being financed jointly, with each level of government contributing Sh250 million per county.
But several counties have reported they have not received their share, and some structures built are reportedly not in use.
“Just empty halls with nothing inside,” describing the outcome in some regions," Kiambu Senator Karungo Thang’wa said.
The Ministry of Trade reported that 20 other counties have started construction using their funds, with progress at over 10 per cent.
However, senators argue that proper feasibility studies should have come first.
Vihiga Senator Godfrey Osotsi said his county faces a land ownership dispute, as the area allocated for the park is linked to Kenya Railways. He urged the government to stop expanding the project until these issues are resolved.
“Treat these 13 counties as pilot counties and halt the process until we have a solid master plan and comprehensive feasibility studies for the remaining counties,” he said.
CS also questioned how counties were involved in the procurement process. “What was the level of involvement of county governments in the procurement process?” he asked.
Osotsi said intergovernmental agreements must be in place when one government handles the duties of another.
In the 2023–24 financial year, Sh4.7 billion was budgeted for the parks, but this was reduced to Sh4.5 billion through a supplementary budget. At the end of the year, only Sh1.152 billion had been disbursed, leaving a gap of Sh3.348 billion.
In the current financial year, Sh2 billion has been allocated for the project, still falling short by Sh1.348 billion to complete phase one.
So far, the total amount disbursed is Sh2.152 billion. Of this, Sh2.03 billion has gone to 13 counties under the conditional grant terms of the Intergovernmental Agreement on CAIPs.
The senators want a full report on procurement and a list of contractors involved. They are also calling for a parliamentary inquiry into the project to ensure public money is not wasted.
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