The Lower Eastern Times Opening The Third Eye
Related Articles
Several essential public service sectors are set to receive reduced funding under the proposed 2025/26 national budget, sparking fears over the government’s ability to implement reforms and deliver on its Bottom-Up Economic Transformation Agenda (BETA).
Click here to join our WhatsApp Channel
A report by the National Assembly’s Budget and Appropriations Committee reveals that critical departments—particularly those focused on labour, skills development, and public service—face major funding gaps despite their importance in job creation, digitization, and improved service delivery.
For instance, the State Department for Labour and Skills Development has been allocated Sh5.04 billion—Sh1.17 billion less than the amount proposed in the Budget Policy Statement (BPS). This shortfall is expected to stall key programmes such as building 47 digital hubs and setting up labour migration support systems aimed at creating jobs for youth.
Likewise, the State Department for Public Service and Human Capital Development has received Sh9.38 billion—Sh514 million below the BPS recommendation. The committee warned that this cut could disrupt ongoing initiatives like the digital overhaul of government HR and payroll systems, and the expansion of Huduma Centres.
Only 39 percent of development projects across these departments have been funded, leading to delays in infrastructure development and staff training. Institutions like the National Employment Authority and Kenya School of Government are already grappling with operational challenges due to inadequate resources.
Unpaid bills are also piling up: the Public Service Department owes Sh1.5 billion, mostly in unpaid NHIF contributions, while the Labour Department has Sh17.7 million in pending obligations.
The committee has urged the National Treasury to prioritize settling these bills, protect training budgets, and restore funding to critical development programmes. It also recommends full funding for oversight bodies such as the Salaries and Remuneration Commission and Public Service Commission to support reforms and ensure compliance.
There are a few bright spots. The Public Service Commission’s allocation has been increased by Sh91.5 million above the BPS ceiling to Sh3.69 billion, allowing it to continue recruitment drives and restructure the public sector workforce.
Overall, however, the report highlights the ongoing challenge of balancing strict budget controls with the need to invest in efficient public service delivery and employment growth.
