Funds delay, planning gaps stall President Ruto’s industrial parks rollout

The Sh23.5 billion County Aggregation and Industrial Parks (CAIPs) project, one of President William Ruto’s flagship development plans, is facing strong opposition in the Senate.

Senators are calling for the project’s suspension until a full feasibility study and a master plan are developed for all counties involved.

Senators, through the Senate Trade and Investment Committee, said the project risks wasting public resources if major gaps in planning and implementation are not fixed.

They want a parliamentary investigation launched to examine the planning, procurement, and execution of the parks.

The project is being funded equally by the national and county governments, with each expected to contribute Sh250 million.

However, only 13 counties have received disbursements so far, raising questions about fairness and transparency.

While appearing before the committee chaired by Kwale Senator Issa Boy Juma, Trade Cabinet Secretary Lee Kinyanjui admitted some procedural missteps occurred during the rollout but insisted the project’s foundation was solid.

"We acknowledge that some steps were omitted, but the broad conceptualisation of the project is sound," said Kinyanjui.

"We are developing a master plan to guide future implementation and avoid repeating past mistakes."

Kinyanjui also said procurement reforms are underway to improve project management in the next phases.

But senators said this is not enough.

Vihiga Senator Godfrey Osotsi expressed concern about land disputes, particularly in his county, where land allocated for the park is allegedly owned by Kenya Railways.

He urged the government to treat the 13 counties that have completed phase one as pilot areas while halting the rest of the project until proper feasibility studies are done.

"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," Osotsi said.

He also questioned the involvement of counties in decision-making, saying there is a legal requirement for intergovernmental agreements when one level of government performs a function for another.

Kiambu Senator Karungo Thang’wa criticised the structures built in some counties, saying they are not functional.

"Just empty halls with nothing inside," he told the committee.

So far, 16 counties have completed the first phase of the parks, including Busia, Bungoma, Nakuru, Trans Nzoia, Migori, Homa Bay, Siaya, Kisii, Nyamira, Meru, Garissa, Mombasa, Machakos, Uasin Gishu, Kirinyaga, and Embu.

According to the ministry, another 20 counties are building the parks using their own budgets, with construction progress at over 10 percent.

The parks are expected to support value addition in agriculture, livestock, and fisheries by strengthening local supply chains and attracting investment.

But financial setbacks have slowed the project. In the 2023–24 financial year, the government allocated Sh4.7 billion, with Sh4.5 billion for construction and Sh200 million for coordination.

A supplementary budget later cut this to Sh4.5 billion.

Only Sh1.152 billion was released that year, leaving a funding shortfall of Sh3.348 billion for counties in phase one.

In the current financial year, the State Department for Industry has been given Sh2 billion, still Sh1.348 billion less than what is needed to complete ongoing work.

Total disbursements so far stand at Sh2.152 billion, including Sh1 billion sent earlier this year.

Under the Intergovernmental Agreement on CAIPs, the national government is required to send Sh250 million to each county as a conditional grant.

To date, Sh2.03 billion has been disbursed to 13 counties.