Ministries, Departments and Agencies (MDAs) under the Departmental Committee on Labour have appealed to Parliament for additional funding in the 2026/27 financial year.

The agencies warns that the current budget allocations are insufficient to sustain critical public service, labour and human capital development programmes.

The appeal was made during a meeting of the National Assembly Departmental Committee on Labour chaired by Kilifi South MP Ken Chonga, as the committee reviewed the budget estimates for the upcoming financial year.

Speaking before the committee, Principal Secretary for Public Service and Human Capital Development Dr Jane Imbunya said the State Department had been allocated Sh13.563 billion against a requirement of Sh25.45 billion, leaving a significant funding shortfall.

“The State Department seeks your indulgence to appropriate additional funds to enable it to optimally undertake critical programmes, projects and activities,” said Dr. Imbunya.

The sector had a shortfall of Sh11 billion that continue affecting smooth operations in the public sector.

“It is significantly underfunded, thus compromising its ability to fully discharge its mandate and achieve national goals.”

Officials from the State Department for Public Service and Human Capital Development, the State Department for Labour and Skills Development, the Salaries and Remuneration Commission (SRC), and the Public Service Commission (PSC) told MPs that the proposed allocations fall far below their operational requirements and could negatively affect service delivery.

The State Department is responsible for coordinating public service reforms, capacity building, human capital development and implementation of governance and productivity programmes across government institutions.

Over the years, the department has played a central role in digitisation of public services and reforms aimed at improving efficiency in government operations.

Labour and Skills Development Principal Secretary Shadrack Mwadime told MPs that the proposed allocation of Sh6.18 billion would not adequately support the department’s key functions, particularly labour diplomacy, foreign employment engagements and skills development programmes.

“Our core mandate is mainly implemented through foreign travel and meetings and these areas have very low allocation,” said Mwadime.

“This budget will strain the achievement of our mandates and performance targets. Unless enhanced, our key mandates will not be achieved.”

The Labour Ministry has in recent years intensified efforts to secure employment opportunities for Kenyans abroad, particularly in the Gulf region and Europe, while also overseeing labour migration agreements and workers’ welfare programmes.

The Salaries and Remuneration Commission also raised concerns over underfunding, revealing that it requires sh2.1 billion for the next financial year but has only been allocated Ksh914.39 million, leaving a funding gap of about Sh1.2 billion.

SRC officials told the committee that despite the constrained fiscal environment, the commission had narrowed its appeal to priority areas requiring at least Sh610 million in additional funding.

The Public Service Commission similarly sought enhanced allocations to support performance and productivity management, governance and national values, human resource development, administration of quasi-judicial functions and general operations.

Members of the Labour Committee acknowledged the financial pressures facing the agencies but urged the institutions and their Semi-Autonomous Government Agencies (SAGAs) to submit revised lists of priority areas by close of business Thursday.

The committee said the submissions would inform recommendations to be included in its report to the Budget and Appropriations Committee, which is currently scrutinizing the 2026/27 national budget amid growing demands from government institutions seeking more resources within a tight fiscal space.

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