After KMC takeover, military to start money-making projects

 

The Defence ministry is planning to start revenue-generating activities, following budget cuts that have also marginally affected the security docket. 

In what will see the department increase its presence in business beyond its recent take-over of the Kenya Meat Commission (KMC), the Defence ministry says it will establish revenue generating activities to mitigate its funding challenges.

In the new budget for the 2021/22 fiscal year, the ministry notes that it continues to face a number of challenges in delivering its mandate.

These include the negative impact of the Covid-19 pandemic on the economy and national security, increased demand for the Kenya Defence Forces (KDF) to be involved in national development projects and humanitarian civil aid, maritime boundary disputes, high cost of equipment and systems, pending bills, and inadequate funding, among others.

“Some of the measures that the ministry intends to put in place to mitigate against these challenges include establishment of revenue generating activities, enhancement of multiagency approach to create synergy, among others,” the budget document reads in part. 

It does not go to provide any specific revenue-generating activities it is looking at. Kenya’s security budget is usually covered in secrecy on grounds of national security, and it leaves out details on how the Defence ministry will spend its billions.

The ministry, led by Cabinet Secretary Monica Juma, has received a marginal budget cut for the new financial year that starts in July, putting an end to a near steady rise of its budget year on year over the last decade, since Kenya sent its troops to fight terrorists in Somalia.

Revamping KMC

Treasury has allocated Sh119.8 billion to the Ministry of Defence in the new financial year, compared to Sh122.3 billion it was given in the current financial year. This is a Sh2.5 billion cut. This makes 2021 the best year for the Defence ministry so far, where it got Sh122.3 billion.

Some of the main activities it lists to be achieved in the new budget is the revamp of KMC to optimal operational capacity, operationalise the National Aviation Services Department, as well as the acquisition of new equipment and development of related infrastructure.

It also expects to commission and operationalise the Mombasa and Kisumu shipyards, as well as complete the building of MV Jamhuri. The military also plans to develop an earth observation satellite in the new financial year to support national space management.

The core mandate of the Defence ministry is securing the sovereignty of the nation, but it also gets involved in other activities, among them the development and formulation of various policies and strategies such as the Peace Support Policy and Defence Industrialisation Policy.

Its budget is also used to sustain appropriate force posture by recruiting, training and equipping its personnel. In the last financial year, it also conducted successful multi-agency operations such as Operation Amani Boni, the metre gauge railway line rehabilitation, the Covid-19 response, response to intelligence and security threats, humanitarian assistance, peace support operations and validating and implementing the Kenya Space Policy.

It is a mixed bag for other agencies and departments in the security and law enforcement sector.
The National Intelligence Service has also had its budget cut by 7 per cent to Sh42.4 billion in the budget that will cover the 2022 election year.

Budget allocations

The major beneficiary of these budget cuts in the security docket is the department of Interior and Citizen services whose budget has been increased by 5 per cent to Sh138.8 billion.

The ministry, led by Fred Matiang’i, has enjoyed a relatively steady increase in its budget allocations in the past five years. The allocation to the State Department of Interior was Sh131.6 billion in 2017/18, Sh144.4 billion in 2018/19 and Sh138.1 billion in 2019/20.

The increase in allocation in 2018/19 was due to the introduction of the National Integrated Identity Management System (Niims), replacement of police house supplementation with police house allowance, and the general annual salary increment.

In 2022, the Interior department plans to recruit 2,000 new police officers and offer various trainings to a further 8,500 serving officers. It hopes to issue 250,000 new passports and 20,000 work permits. The bulk of its budget, Sh96.4 billion will go towards policing services.

The Department of Correctional Services will also receive more money in the new budget after its allocation was increased by 8 per cent to Sh29.7 billion. The budget of the Ethics and Anti-Corruption Commission has remained almost flat at Sh3.3 billion, while the Office of the Director of Public Prosecutions will receive Sh3.2 billion in the new financial year, a marginal drop of about Sh100 million, compared to the current financial year.

The Independent Policing Oversight Authority will see its budget increase by 12 per cent to Sh914 million, while the National Police Service Commission and the Witness Protection Agency will reactive Sh722 million and Sh487 million respectively.

In total, the security docket will get Sh339.6 billion of the Sh3.6 trillion budget, which translates to about 10 per cent of the total budget.    BY DAILY NATION