Project Agricultural Insurance under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 37.8%. Budget absorption is 0%. Key challenges: Limited fiscal space | None | No funds. Proposed resolutions: Need to engage the National Treasury to understand the importance of the insurance thus re consider and allocate funds to the project | None | SD for Agriculture to allocate funds towards this program SD for Agriculture to consider other crops for insurance including Potatoes, Cotton etc..

Project Blue Economy Investment and Development under ENVIRONMENT AND NATURAL RESOURCES Cluster is currently Ongoing. Average performance is 56.6%. Key challenges: Construction of the project has not commenced due to a court injunction | None | none. Proposed resolutions: Expedite resolution of the court injunction to facilitate the contract to complete the project in good time | None | none.

Project Civil Aviation Development and Management under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 44.7%. Budget absorption is 0.9%. Key challenges: None | Delays due to E-GP system for procurement process | Land issues. Proposed resolutions: None | E-GP Exception to accelerate the procurement process | Land is not available within the airport, it is recommended that a suitabe site is identified for acquisition.

Project Community Health High Impact Intervention under SOCIAL Cluster is currently Ongoing. Average performance is 42.9%. Budget absorption is 167.5%. Key challenges: None | Target not achieved. This is due to inadequate funds for affected implementation | Further investigation. Proposed resolutions: None | na | Partnerships and collaborations enable achievement of set targets.

Project Completion and Operationalization of SEZ in Naivasha,Athi River, Kenanie Leather Industrial Park and Development of New EPZA in Uasin Gishu, Kirinyaga, Nakuru, Muranga, Busia, Kwale, and Lamu under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 49%. Budget absorption is 8.5%. Key challenges: Inadequate budget funding | Land dispute | None. Proposed resolutions: Sufficient Budgetary allocation and timely disbursement | There is need for dispute expedited dispute dissolution to unlock the challenge. | None.

Project Completion of Bachuma Livestock Export Zone (LEZ) and Construction and Operation of Lamu LEZ under FINANCE AND PRODUCTION Cluster is currently Stalled. Average performance is 28.2%. Budget absorption is 100%. Key challenges: The project could not start due to fiscal space challenge within the State Department | The project was affected by lack of budgetary resources | The lack of activities at the site has created some issues such as destruction of Bio-security wall by the animals especially (Elephants) and also hum.... Proposed resolutions: Expedite alternative sources of funding especially the PPP model to finalize and operationalize. | PPP Model to be considered in the project | The process of engaging PPP model was terminated by court, citing lack of public participation. To adhere to the ruling Public participation was redon....

Project Construction of 200,000 Affordable Housing Units Annually under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 35.4%. Budget absorption is 29.4%. Key challenges: None | Site handover pending | Site Handover pending. Proposed resolutions: None | SDHUD to ensure fast site handover process to accelerates work on site | SDHUD to ensure fast site handover pending to accelerates work.

Project Construction of 6,000 km Roads under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 42.2%. Budget absorption is 0.5%. Key challenges: -none | Insecurity within the project area. Land acquisition and compensation. Potential community demands along the alignment. | Logging activities & Overloading along Gatakaini – Njabini (B20) road coupled with rainy conditions neccesitating repeated maintainance operations. In.... Proposed resolutions: -none | - | Engagement of a security liason and Kenya Defense Forces. Engagement with the National Land Commission to ensure timely transmission of funds to proje....

Project Construction of High Social Impact Dams under INFRASTRUCTURE Cluster is currently Pipeline. Average performance is 39.3%. Budget absorption is 7.7%. Key challenges: None | Lack of funds | lack of funds. Proposed resolutions: None | Expedite provision of funds. | Expedite provision of financing for the project..

Project Construction, Rehabilitation, and Operationalization of Ports under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 43.3%. Budget absorption is 17.5%. Key challenges: None | none | • Resettlement of PAPs • Delay in getting concurrence from JICA • Delay in payment of advance payment. Proposed resolutions: None | none | • Continuous engagements with the Ministry of Roads & Transport and the National Treasury to ensure funding availability throughout project implementa....

Project Conversion of East African Portland Cement Company into a Building Materials Complex under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 1.4%. Budget absorption is 0%. Key challenges: No budgetary allocation | No funding | No funding for the project. Proposed resolutions: None | To be considered basing on availability of funds | N/A.

Project County Aggregation and Industrial Parks Project under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 28.2%. Budget absorption is 128.1%. Key challenges: Delay of release of funds | Delay in relase of funds | Some counties had no allocation of kshs 250M from their budget. Proposed resolutions: Parliament to fast track the pass the bill | Fast tract the passage of county additional allocation of revenue bill. | Prioritize Funding the remaining counties.

Project Diaspora Service Delivery under GOVERNANCE AND PUBLIC ADMINISTRATION Cluster is currently Completed. Average performance is 55.6%. Budget absorption is 29.4%. Key challenges: N/A | NA | No funding in the budget. Proposed resolutions: N/A | NA | Its a critical project for the state department and therefore should be prioritized for budgeting.

Project Digital Access and Creative Economy under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 55.3%. Budget absorption is 135.6%. Key challenges: None | The under-performance is due to the slow start of the financial year. | N/a. Proposed resolutions: None | N/A | Not applicable.

Project Digitalization of Government Services and Records under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 50.6%. Budget absorption is 20.6%. Key challenges: None | bulkiness of the records | Delayed procurement of ICT Systems under the Kenya Digital Economy Acceleration Project (KDEAP).. Proposed resolutions: None | we need to revise the output | Fastrack procurement of ICT Systems under the Kenya Digital Economy Acceleration Project (KDEAP)..

Project E-Voucher Inputs System to Support 2 Million Farmers under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 48.7%. Budget absorption is 72.7%. Key challenges: Exchequer release coupled with inadequate budgetary allocation that has lead to huge pending bills that has been accumulating over time | Inadeguate budgetary allocation coupled with exchequer delays leading to huge pending bills | None. Proposed resolutions: There is need for a special fund to be established for this programme which has a high impact on food security | Given the high impact of the fertilizer subsidy programmee as evidenced in increased food security in the Country, there is need for creation of a spe... | None.

Project Edible Oil Value Chains under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 51.2%. Budget absorption is 4.4%. Key challenges: None | unavailability of seeds on time | Budget cuts. Proposed resolutions: None | Timely provision of seeds | Avail seeds on time.

Project Elevate Kenya's Anchor State Status under GOVERNANCE AND PUBLIC ADMINISTRATION Cluster is currently Ongoing. Average performance is 47.6%. Budget absorption is 2807.3%. Key challenges: Late involvement of MFDA by MDAs to the preparations of conferences/events. | None | Low implementation/follow-up of the signed/concluded legal instruments.. Proposed resolutions: MDAs to involve SDFA in the early preparation processes of conferences/events | None | 1. State Department to prioritise initiation and conclusion of agreements/MoUs that are geared towards implementation of the Government Agenda (BETA)....

Project Establishment of a Dairy Feed Centre in Every Ward under FINANCE AND PRODUCTION Cluster is currently Stalled. Average performance is 40%. Key challenges: None | No funds. Proposed resolutions: Fast track the PCN processing in line with PIM Regulations | None | SD for Livestock Development and State Department for Co-operatives to expedite implementation of the project.

Project Establishment of a Modern Integrated Iron and Steel Mill Plant under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 22.2%. Budget absorption is 0%. Key challenges: No funding | None | no Budgetary allocation. Proposed resolutions: SD for Industry to source for alternative sources of funding including PPP | None | Prioritize funding the project.

Project Establishment of Animal Feeds Production Plant at Nasewa Industrial Park under FINANCE AND PRODUCTION Cluster is currently Unknown.

Project Establishment of EAC Trade Hubs for SME Acceleration in Dar es Salaam, Kampala, Kigali, and Kinshasa under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 12.9%. Key challenges: no budgetary allocation | Lengthy opproval process | no funds allocated. Proposed resolutions: To be prioritized in the next FY 2026/27 | To be fast track for approval | To be conciderd for funding.

Project Establishment of MSMEs Industrial Parks and Business Incubation Centres in all TVETs and Establishment of MSME Business Centers in every Ward under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 51.8%. Budget absorption is 7.1%. Key challenges: Limited Budget to Refurbish and Renovate More CIDCs Serving MSMEs | Lack of Budget | None. Proposed resolutions: Allocation of more funding(KSh 200 million) for the renovation and Equipping of more CIDCs Countrywide. (Total CIDCs 210). | Provision of more Budget for the establishment of the Industrial Parks and Business incubation centers | None.

Project Expansion of Existing Irrigation Schemes under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 33.7%. Budget absorption is 115.4%. Key challenges: None | Low uptake/low production in the existing 10,000 acres due to siltation in the sump well | Termination of PIP PPP Process. Proposed resolutions: None | Desilting of the sump well by the Private Party | Funding for Climate proofing of Lokubae and Katilu Clusters.

Project Green Financing and Climate Change Finance under FINANCE AND PRODUCTION Cluster is currently Completed. Average performance is 61.8%. Budget absorption is 22.6%. Key challenges: i. Resource Constraint persisted and affected implementation of budgets. The rationalization of the budget, occasioned by underperformance of revenue... | No challange experienced. | There is a significant financing gap to meet the Country's Nationally Determined Contributions (NDCs) of USD 62 Billion by 2030.. Proposed resolutions: i. Mobilization of adequate resources by exploring various funding sources, both domestic and international, and ensuring that resources are channeled... | Government to push for higher, more consistent allocations from County budgets to address the significant gaps. | All Counties to be allocated more funds towards climate smart initiatives..

Project Human Resource for Health under SOCIAL Cluster is currently Ongoing. Average performance is 48%. Budget absorption is 87.4%. Key challenges: NA | None | -. Proposed resolutions: NA | None | -.

Project Implementation of Universal Health Care under SOCIAL Cluster is currently Ongoing. Average performance is 67.3%. Budget absorption is 1219.7%. Key challenges: None | 1. Registration to the Social Health Insurance Fund (SHIF) 2. registration in Kenya faces significant challenges, primarily driven by technical glitch... | Social Health Authority (SHA) registration in Kenya faces significant challenges, primarily driven by technical glitches with the Afya Yangu portal, l.... Proposed resolutions: None | 1. Promotion of Registration: Use USSD code *147# or visit www.sha.go.ke and all targeted registration by the government. 2. Dependents must be linked... | Intensify Public outreach on the program.

Project Judicial Transformation under GOVERNANCE AND PUBLIC ADMINISTRATION Cluster is currently Pipeline. Average performance is 36.1%. Budget absorption is 53.7%. Key challenges: Pending approval by the Cabinet | 1. Budgetary Constraints a) Affecting the creation of new judge positions. b)Recruitment processes (advertisement & interviews). c) Remuneration and b... | NONE. Proposed resolutions: Cabinet to fast-track the approval | 1. The Executive and Parliament should enhance the Judiciary's budgetary allocation to ensure optimal service delivery. 2. Thorough feasibility studie... | NONE.

Project Kenanie Leather Industrial Park under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 49.7%. Budget absorption is 0%. Key challenges: None | N/A | Slow Progress. Proposed resolutions: None | Expedite completion of works | Expedite the pending works.

Project Labour Migration under SOCIAL Cluster is currently Ongoing. Average performance is 60.1%. Budget absorption is 30.1%. Key challenges: - Delay in the approval of the Draft Labour Mobility Management Bill, which is affecting labour mobility processes, particularly the regulation of rec... | Challenge with funding delayed the process and limited the ability to conduct assessments in various countries as scheduled. | - Delays in conclusion of BLAs to enable Kenyans get access to more opportunities in various labour markets. - Limited job orders from destination cou.... Proposed resolutions: - Cabinet to prioritize the approval and subsequent implementation of the Draft Labour Mobility Management Bill to provide a clear legal and instituti... | Timely and adequate disbursement of funds by the the National Treasury to facilitate implementation of activities at the appropriate stages of the BLA... | -The State Department for Labour and Skills Development to expand access to more labour markets by initiating BLAs, to enable Kenyan job seekers get m....

Project Last Mile County Internet Connectivity Programme (Phase IV and V) under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 31.4%. Budget absorption is 12%. Key challenges: None | The project has faced contractual issues due to a tax dispute that is being resolved | Tax disputes. Proposed resolutions: none | Resolve tax dispute for the project to progress | None.

Project Manufacture and Assembly of Components and Parts of Agro Machinery under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 48.9%. Budget absorption is 7.7%. Key challenges: N/A | Delays in e-GP The budget was rationalized downwards | The budget was rationalized downwards. Proposed resolutions: SD for Industry to expedite the commencement of the Project | Efficiency of e-GP to be improved | None.

Project Mineral Resource Development and Commercialization under ENVIRONMENT AND NATURAL RESOURCES Cluster is currently Pipeline. Average performance is 0%. Budget absorption is 0%. Key challenges: Delayed finalization of the Project Concept Notes for submission to the National Treasury | Pending budgetary allocation | Pending approval of the developed Project Concept Notes. Proposed resolutions: The State Department for mining to fast-track completion of the project concept notes to facilitate development and commercialization of copper and ch... | SDM to include budgetary provision in the subsector report for FY 2026/27 and MTEF | SDM to make a follow up with The National Treasury to expedite the approval process.

Project Modernization of Kenya Veterinary Vaccine Production Institute (KEVEVAPI) under FINANCE AND PRODUCTION Cluster is currently Stalled. Average performance is 33.8%. Key challenges: The delay in Modernization of the KEVEVAPI plant has affected the attainment of vaccines production targets as envisaged in MTP IV. | The delayed finalization of the Modernization of the KEVEVAPI plant to achieve Good Manufacturing practice limits the production and productivity. Thi... | The lack of GMP certification limits the expanded production capacity to achieve the MTP IV targets.. Proposed resolutions: Provide remaining budget of KES 585 Million to finalize the Phase I of the KEVEVAPI Modernization project | Finalize the KEVEVAPI Modernization project, harmonize and coordinate the national vaccination | Finalize the implementation of the Modernization of the KEVEVAPI Plant which requires a budget of KES 585 Million to finalize Phase I of the project..

Project Modernization of New KCC Factories under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 17%. Budget absorption is 92.3%. Key challenges: There are questions regarding the feasibility of New KCC business model that risks affecting implementation of this project | Project site was not feasible | The factory site is not feasible. Proposed resolutions: The Cabinet to provide directions regarding the future of New KCC to facilitate implementation of the project deliverables. | Redesign the project to include only feasible sites | Re-design the project with feasible sites and adjust the scope.

Project National Liquefied Petroleum Gas Enhancement under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 4.6%. Budget absorption is 45%. Key challenges: Redesigning of the implementation strategy of the project to include the private sector players | Delays in the development of a robust distribution framework by the NOCK. | Redesigning of the project implementation strategy to incorporate the private sector.. Proposed resolutions: The State Department to develop a framework for private sector involvement in the project. Undertake Continuous stakeholder engagement. | State Department to fast track the finalization of the distribution framework for effective roll out countrywide. | Development of Framework to incorporate the private sector..

Project National Safety Net Programme (NSNP) under SOCIAL Cluster is currently Ongoing. Average performance is 67.5%. Budget absorption is 36.4%. Key challenges: -Lack of Ksh. 150 Million operations funds for Monitoring of the Inua Jamii Cash transfer programme | - Lack of Ksh. 150 Million budget for operations for the Inua Jamii programme | -Data inconsistencies and errors during migration from legacy systems -Insufficient budgetary allocation for system maintenance and upgrades -System s.... Proposed resolutions: -Allocate adequate and ring-fenced Ksh 150 Million for operational funds to support field supervision, registration, grievance redress, logistics, and... | -Conduct thorough data validation and cleaning exercises prior to and after migration from legacy systems. -Provide ring-fenced budget allocations for... | -Implement robust server infrastructure and backup systems to minimize unplanned outages. -Establish scheduled maintenance windows and communicate the....

Project National Tree Growing and Restoration under ENVIRONMENT AND NATURAL RESOURCES Cluster is currently Ongoing. Average performance is 37.9%. Budget absorption is 40.7%. Key challenges: Production affected by unfavourable weather condition and delay in exchequer release | Delay in exchequer release | rehabilitation is limited during the dry season. Proposed resolutions: production expected to be scaled up during the long rains (march to may) national treasury to fasttrack exchequer timely issuance | the national treasury to facilitate timely exchequer | State department for Forestry to expedite more rehabilitation during the long rains season (march to may) in Q3 and Q4.

Project Police Stations and National Government Administration (NGA) Field Offices under GOVERNANCE AND PUBLIC ADMINISTRATION Cluster is currently Completed. Average performance is 38.2%. Budget absorption is 15.4%. Key challenges: Delayed fund releases. Late issuance of Authority to Incur Expenditure (AIE). | Delayed release of ksh. 144,500,000 | Delayed fund releases and late issuance of Authority to Incur Expenditure (AIE).. Proposed resolutions: Timely and full release of funds to support project activities. Submit expenditure requests and AIEs early and follow up regularly. | Timely funds release by exchequer | Ensure timely and full release of funds to support project activities. Submit expenditure requests and AIEs early and follow up regularly..

Project Power Transmission and distribution under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 26.6%. Budget absorption is 155.9%. Key challenges: Achievement affected by fewer projects implemented during the quarter as a result of shortage of materials caused by introduction of eGP procurement r... | Progress affected by limited availability of critical materials such as electricity meters. Achievement affected by fewer projects implemented during... | The downward review of the power distribution budget affected the attainment of the target.. Proposed resolutions: Promote local capacity in manufacturing of the materials. Exemption from eGP on procurement of the materials. | Promote local capacity in manufacture of the material. Exemption from eGP on procurement of the materials. | Seek other funding models such as counterpart funding or PPP..

Project Promotion of Konza Technopolis as a Silicon Savanna under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 62.2%. Budget absorption is 8%. Key challenges: None | Delays in Exchequer release | Project at the tendering stage. Proposed resolutions: None | none | Fast track the release of Exchequer.

Project Provision of Financing to MSMEs (Hustler Fund) under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 56.8%. Budget absorption is 47.9%. Key challenges: None | N/A | inadequate allocation. Proposed resolutions: Request for more funding from the Exchequer to cater for the growing demand | None | N/A.

Project Rice Value Chain under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 56.4%. Budget absorption is 25.4%. Key challenges: Excheguer release challenges leading to overdependence on external players | None | Lack of funds. Proposed resolutions: Collaboration in realising the project is the way to go | None | Exchequer to release funds for the project.

Project Talanta Hela under SOCIAL Cluster is currently Ongoing. Average performance is 46.4%. Budget absorption is 768.7%. Key challenges: Sports, Arts, and Social Development Fund (SASDF) cash flows are significantly constrained due to major financial commitments hence affecting funding... | The project lacks a relevant legal framework. | The project has no relevant legal framework.. Proposed resolutions: Exchequer supplement to bridge the funding gap of KSh. 2.035 billion as per the approved budget. | Fast track the formulation of a functional framework or enabling legal instruments. | Fast tracking the formulation of a functional framework or enabling legal instruments..

Project Technical Vocational Education and Training Expansion under SOCIAL Cluster is currently Completed. Average performance is 15.5%. Budget absorption is 43.9%. Key challenges: None | N/A | Poor internet connectivity in some TVETs based in remote areas of the country. Proposed resolutions: None | N/A | The Ministry of ICT to enhance internet connectivity in the most remote areas of the country.

Project Textile and Apparel Value Chain under FINANCE AND PRODUCTION Cluster is currently Ongoing. Average performance is 47.5%. Budget absorption is 17.3%. Key challenges: Limited certified seeds in the country | None | No funds. Proposed resolutions: Research institutions to invest more in the production of certified seeds | None | SD for agriculture to allocate funds.

Project Tourism Promotion and Marketing under ENVIRONMENT AND NATURAL RESOURCES Cluster is currently Stalled. Average performance is 52.3%. Budget absorption is 0%. Key challenges: Lack of an established policy and criteria on deployment of Tourism Personnel as Tourism Attache's in strategic Kenyan Foreign Missions. No budget pro... | None | Lack of an established policy and criteria on deployment of Tourism Personnel as Tourism Attache's in strategic Kenyan Foreign Missions. No budget pro.... Proposed resolutions: The Ministry proposed consideration for Tourism Attache's in Kenyan Foreign Missions in the New Foreign Policy submitted to Cabinet. Follow up on this... | None | none.

Project Transformation, Decentralization, and Digitization of the State Law Office under GOVERNANCE AND PUBLIC ADMINISTRATION Cluster is currently Ongoing. Average performance is 46.3%. Budget absorption is 23.5%. Key challenges: The activity is time consuming and the office lacks adequate human capacity and equipments to to scan the bulky manual documents and records. | Delayed approval by PSC and National Treasury | The training needs surpass allocated funds. Proposed resolutions: The office to engage interns and casuals to complement internal staff capacity. | Fastrack the approvals by PSC and National Treasury | The office to to enhance efforts on sourcing alternative sources of funds to supplement allocated training budget..

Project Universal Broadband Connectivity (100,000 km Fibre Optic Cable) under INFRASTRUCTURE Cluster is currently Ongoing. Average performance is 51.4%. Budget absorption is 0%. Key challenges: None | The under-performance is due to the slow start of the financial year. | Limited budgetary provision. Proposed resolutions: None | Increase budgetary allocation | Fast-track contractor engagement.

Project Universal Primary and Secondary Education under SOCIAL Cluster is currently Ongoing. Average performance is 46.7%. Budget absorption is 23.5%. Key challenges: Budgetary Cuts/ Budgetary Constraint | None | Late disbursement of funds. Proposed resolutions: Budgetary Allocation | None | increase funding.

Project Water Towers Rehabilitation and Conservation under ENVIRONMENT AND NATURAL RESOURCES Cluster is currently Ongoing. Average performance is 6.4%. Budget absorption is 83.3%. Key challenges: None | Financial challenges | Financial Challenges. Proposed resolutions: None | Regular exchequer release | Timely disbursements of funds by the National Treasury.