The State Department for Public Investments and Asset Management has urged MPs to increase its budget allocation to support the rollout of a modern electronic procurement system and the operationalization of the Government Owned Enterprises (GOE) Act during budget discussions.
E-Procurement and GOE Act Drive Funding Push
PS Cyrell Odede told the Departmental Committee on Finance and National Planning that additional funding is required to fully deploy the Electronic Government Procurement (e-GP) system and implement provisions of the GOE Act enacted last year which transforms loss making parastatals into commercially driven public limited liability companies.
The State Department is seeking reinstatement of Ksh 373.3m under recurrent expenditure and Ksh 297.5m under development vote to restore key projects including the e-GP rollout.
It also requested Ksh 200m to establish a dedicated GOE Department including Ksh 20m for the selection panel and secretariat and Ksh 80m for engaging independent directors across 65 government owned enterprises.
Parliament Scrutinises Consolidated Bank Capital Injection
MPs questioned a Ksh 1.125m allocation to Consolidated Bank of Kenya aimed at boosting its capital adequacy ratio with PS Odede defending the intervention as necessary to prevent collapse.
The Department reported that over 45,000 suppliers have registered on the e-GP system against a target of 100,000 users by the end of the financial year.
An additional Ksh 100m was sought for the Public Investment Management Information System (PIMIS) to support digital tracking of public projects from planning to evaluation.
Members raised concerns over pension delays with officials clarifying document requirements while Hon Kuria Kimani criticised inconsistent communication and directed submission of pending application schedules.
Controller of Budget Faces Funding Shortfall
The Office of the Controller of Budget also appeared seeking Ksh 1.6bn but received Ksh 933.4m leaving a Ksh 667m funding gap which officials warned could weaken oversight functions.
Committee Chair Kuria Kimani said the requests would be reviewed within fiscal constraints while urging timely submission of legal amendments to strengthen oversight institutions ahead of the next financial cycle.
The Department emphasised that adequate funding is critical for digital transformation improved accountability and efficient management of public investments as Kenya advances reforms in procurement enterprise governance and fiscal oversight across national and county governments.
