The National Assembly’s departmental committee on blue economy, water and irrigation has raised concerns over budget cuts in the allocations to semi-autonomous government agencies (SAGAs) under the state department for blue economy and fisheries.
The committee chaired by Marakwet East MP Kangogo Bowen brought up the matter when it met with the principal secretary of the state department, Betsy Njagi.
Njagi appeared before the committee to brief members on the budget estimates for the 2024/25 financial year and the 2023/24 financial year supplementary II estimates.
During the engagement, members noted that although the 2023/24 FY Supplementary II Estimates did not propose any changes to the overall recurrent expenditure for the state department, there was an internal adjustment of Sh9 million, being 100% reduction from the Kenya Fisheries Advisory Council (KFAC) and a re-allocated to State Department headquarters.
On the other hand, 2023/24 FY Supplementary II Estimates proposes to decrease the development expenditure of the department by Sh1.45 billion.
This, the team noted, is likely to affect projects like Aqua Business Development Projects under the headquarters which has a reduction of Sh500 Million equivalent to 19% and Kenya Marine Fisheries and Socio-Economic Development Project (KEMSFED) which has a reduction of Sh653 million equivalent to 18%.
“How is this KFAC going to survive without any budget allocations? Are you planning to disband it? How are the KEMSFED staffs going to operate without medical insurance,” Bowen asked.
In response, the PS told the committee that they were not consulted before the cuts were made and were equally surprised. She however told members that she has written a letter to the PS Treasury asking him to address the matter.
“We were equally surprised by the cuts and they were done without us being consulted. I have, however, written to the PS for the Treasury asking him to address the issue of budget cuts in relation to the staff medical scheme,” Njagi said.
For the 2024/25 FY, the state department has been allocated Sh2.32 billion for recurrent expenditure which will be funded from Appropriations-in-Aid (AIA) of Sh70 million and GoK Exchequer funding of Sh2. 25 billion.
This is a decrease of Sh504.7 million as compared to the expenditure estimates for 2023/24 FY, and is as a result of a reduction in GoK Exchequer funding.
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