Members of the Committee on Trade, Industry and Cooperatives have called for the fast-tracking of a proposal to merge affirmative action funds.
Committee Chairperson Hon. Bernard Shinali (Ikolomani) said merging the Uwezo Fund, Youth Fund and Women Enterprise Fund into one entity will make it easier for targeted groups to access financing.
He spoke during a meeting to discuss the 2026 Budget Policy Statement for the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development.
Cabinet Secretary Hon. Wycliffe Oparanya, Principal Secretaries Patrick Kilemi (Cooperatives) and Susan Mang’eni (MSMEs Development), and senior officials from various state agencies attended the session.
Last year, CS Oparanya announced that the three funds would be merged to form the Biashara Fund.
He said the move would seal loopholes that have led to misuse. He noted that the merger aims to improve efficiency, enhance resource allocation and stop cases where individuals benefit more than once from different funds.
During the meeting, Hon. Shinali and Committee Vice Chairperson Hon. Marianne Kitany (Aldai) led members in demanding for an update on the planned merger.
Their concern followed the CS’s disclosure that the Uwezo Fund requires additional funding of Sh600 million. Of this amount, Sh400 million is earmarked for the Labour Mobility (Wezesha Majuu) programme, while the rest will support the Women’s Economic Empowerment project.
“You have been on record saying the funds will be merged. What is the status? Why allocate more money to the Uwezo Fund when there is a plan to merge it with other funds?” posed Hon. Shinali.In response, CS Oparanya said the plan is still on course. He promised to provide the committee with a detailed update on the current status of the proposal.
“We will not backtrack on consolidating the funds. This is the only way to ensure a more efficient, transparent and impactful financial support system for small businesses. It will simplify access, reduce bureaucracy and prevent duplication,” he said.The CS also informed the committee that the State Department for MSMEs Development has a funding gap of Sh12.417 billion. The State Department for Cooperatives has a funding gap of about Sh7.816 billion.
“These funding gaps are substantial and will greatly limit the implementation of key programmes if not addressed,” said the CS.“I request this Committee to support the Ministry in addressing the funding gaps so that we can fully implement our mandate and accelerate national economic transformation,” he added.