A parliamentary committee has backed the creation of a Sh5 billion public participation fund to finance projects proposed by citizens during budget hearings, opening a new spending vote even as the government implements austerity measures.
The allocation, included in the National Treasury’s 2026/27 budget estimates, will finance projects and policy interventions raised during parliamentary public participation forums, including stalled development projects, teacher recruitment and medical staffing.
The new spending vote, dubbed Strategic Response to Public Initiatives/Public Participation, has been approved by the National Assembly’s Departmental Committee on Finance and National Planning after its review of the Treasury’s budget estimates.
Treasury officials say the programme is intended to ensure proposals made by citizens during annual budget consultations are not ignored once public hearings conclude.
“This relates to projects identified through public participation through the parliamentary process. This list is normally approved by Parliament,” Albert Mwenda, director-general for Budget, Fiscal and Economic Affairs at the National Treasury, told the Business Daily.
Citizen proposals
Each year, Parliament’s Budget and Appropriations Committee (BAC) compiles recommendations collected during public hearings held across the country while reviewing budget estimates.
The submissions typically include fiscal proposals, policy directives and development priorities raised by citizens, lobby groups, professionals and community organisations.
In previous budget cycles, many of the proposals adopted by Parliament remained unimplemented because of funding constraints despite being incorporated into committee reports.
In its report on the current 2025/26 budget, for instance, the BAC directed the Treasury to conduct a comprehensive audit of stalled and slow-moving projects by March 2026 to determine whether they should be terminated, consolidated or fast-tracked.
The committee also backed funding for the Teachers’ Service Commission to transition intern teachers to permanent and pensionable terms to address staffing shortages in junior secondary schools. The proposal was not implemented after the Treasury cited a lack of funds.
Similarly, the Ministry of Health had been directed to prioritise the deployment and funding of medical interns and confirm more than 8,500 Universal Health Coverage workers employed on contract terms.
Spending scrutiny
“The committee recommends an allocation of Sh5 billion under Strategic Response to Public Initiatives/Public Participation,” the Finance and Planning Committee, chaired by Molo MP Kuria Kimani, said in its report.
The proposal now awaits debate and approval by the National Assembly as part of the 2026/27 budget estimates.
If passed, attention will shift to how the Treasury operationalises the fund, including project selection criteria, accountability structures and oversight mechanisms governing expenditure.
The allocation has, however, drawn scrutiny over the Treasury’s spending priorities at a time when ministries and State agencies are facing deep cuts in travel, training, hospitality and office operations as part of efforts to contain expenditure amid below-target tax receipts and rising debt-servicing costs.
The Finance and Planning Committee has consequently reduced the Treasury’s training budget from Sh250 million to Sh9 million, while expenditure on office supplies has been cut from Sh485 million to Sh12 million.
Hospitality spending was similarly reduced from Sh232 million to Sh12 million as lawmakers intensified pressure on ministries to curb recurrent expenditure and redirect resources towards development priorities.
The creation of the fund is likely to spark debate over whether public participation proposals should receive ring-fenced financing amid mounting fiscal pressure and growing demands for accountability in the use of public funds.
