Sh1.6 billion funding shortfall threatens cash transfers for thousands of Northern Kenya households

Sh1.6 billion funding shortfall threatens cash transfers for thousands of Northern Kenya households

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Presenting the Supplementary Estimates I for the financial year ending June 30, 2026, Kello said the department faces a shortfall of Sh1.556 billion, with only Sh3.919 billion allocated against a requirement of Sh5.475 billion.

Thousands of food-insecure households risk missing out on essential government cash transfers in northern Kenya due to a Sh1.6 billion funding shortfall, the State Department for ASALs and Regional Development has warned.
Appearing on Tuesday before the National Assembly’s Departmental Committee on Regional Development, chaired by Sigor MP Peter Lochakapong, Principal Secretary Kello Harsama outlined a dire financial situation that threatens the Hunger Safety Net Programme (HSNP), a key social protection initiative for the country’s most food-insecure households.
Presenting the Supplementary Estimates I for the financial year ending June 30, 2026, Kello said the department faces a shortfall of Sh1.556 billion, with only Sh3.919 billion allocated against a requirement of Sh5.475 billion.
“We have a requirement of Sh5.475 billion against an allocation of Sh3.919 billion, leaving a deficit of Sh1.556 billion,” he told MPs.
“Without this support, we will not be able to cover the payroll cycles for the last quarter of the year. Beneficiaries will not be paid.”
The PS said the department had already invoked Article 223 of the Constitution to access Sh350 million for emergency drought interventions, including water trucking and borehole rehabilitation, but stressed that the funds fall far short of needs.
The financial strain is compounded by pending bills totalling Sh11.5 billion, with the Lake Basin Development Authority alone accounting for Sh9.5 billion. Harsama also revealed that the National Cereals and Produce Board is owed Sh53 million for relief food supplied in the previous financial year, a debt that remains unsettled following the transfer of the function to another ministry without a corresponding budget.
The department also noted that several flagship projects have stalled due to a lack of funding. According to Harswma, the Ewaso Ng’iro tannery and leather factory, commissioned by President William Ruto in May 2025 and intended to receive Sh400 million in seed capital for operations, including a planned shoe production line, has yet to receive any funds.
Similarly, the Oloitoktok tomato agro-processing plant in Kajiado County remains incomplete after three years, leaving farmers without cold storage and processing facilities.
In a rare admission, Kello said the department struggles even to meet basic operational needs. After funding semi-autonomous agencies, only Sh65 million remains for headquarters operations and official engagements.
“We have no allocation for foreign travel, yet the Cabinet Secretary is expected to represent the country in key forums on climate change and peace,” he said.
He added that logistical challenges are hampering oversight work, citing a grounded official vehicle that requires Sh5.6 million for repairs and no budget for fuel to facilitate field visits across ASAL counties. He appealed to MPs to approve an additional Sh275 million for operations and maintenance, warning that the department’s mandate is at risk.
East African Community, ASALs, and Regional Development CS Beatrice Askul Moe, who also appeared before the committee, highlighted similar logistical and security challenges.
She recounted a recent Nairobi incident in which her vehicle was involved in an accident, leaving her trapped inside until police arrived. She called for additional vehicles, improved office facilities and timely staff salary payments, noting that delays have at times left employees unpaid for months.
Committee chair Lochakapong said the committee would review the submissions and compile a report to present recommendations to the House, assuring officials that their concerns would be considered during budget deliberations.

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