MPs Challenge Ksh4 Billion Capital Injection into Prison Enterprise Fund

The National Assembly’s Committee on Delegated Legislation has raised concerns over the proposed Ksh4 billion initial capital injection into the Prison Enterprise Fund, warning it may infringe on Parliament’s constitutional authority to approve public spending.

During a session at Bunge Tower on August 18, 2026, the committee scrutinised the Public Finance Management (Prison Enterprise Fund) Regulations, 2026. These regulations aim to replace the 1993 Prison Industries and Farms Fund regulations with a new framework designed to modernise correctional industries.

Budgetary Authority Under Threat

Committee chairperson Samuel Chepkonga (Ainabkoi) criticised Regulation 7, which stipulates the Ksh4 billion capital injection, noting that this allocation is absent from the national budget. He cautioned that such a move could undermine the budget committee’s power to appropriate funds, potentially leading to legislation on unapproved expenditures.

Representatives from the National Treasury explained the government’s plan to disburse Ksh1 billion annually over four years to upgrade prison equipment and enterprises. However, Chepkonga urged a reconsideration of the provision, emphasizing that fund allocations must first receive parliamentary approval.

Rehabilitation Funding and Oversight Concerns

Lawmakers also expressed reservations about a clause requiring 5% of the fund to be devoted to prisoner rehabilitation. Critics argued the regulations lack clarity on how rehabilitation funds will be utilised, raising the risk of mismanagement of approximately Ksh200 million.

• Tom Olouch called for a detailed list of rehabilitation activities to prevent misuse.
• Vice-chairperson Robert Githinji (Gichugu) described the rehabilitation programmes as overly vague.

Principal Secretary for Correctional Services Salome Wairimu defended the flexible approach, noting rehabilitation now encompasses emerging fields such as artificial intelligence, content creation, and music production. She highlighted that these reforms aim to enhance the economic viability of prison enterprises while aligning inmate rehabilitation with international standards like the Mandela Rules.

Additional Regulatory Issues

The committee also questioned a provision barring individuals who held public office within the past five years from serving as the fund’s chief executive officer, arguing existing laws already address appointment suitability.

MPs called for a redraft of the regulations to improve transparency and clarity, including a definitive list of approved prison enterprises rather than allowing broad discretion to future boards.