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Government Unveils Plans for Prison Enterprise Fund to Boost Revenue

Kisumu: The government is poised to implement reforms in the financial management of the Prisons Service to enable the entity to generate increased revenue from its extensive resources, thereby supporting its own activities. This initiative involves the establishment of the Prison Enterprise Fund, aimed at transforming correctional facilities into revenue-generating organizations.

According to Kenya News Agency, the Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, established a task force on July 30, 2025, to tour correctional facilities across the country. The task force's mission is to gather feedback from the public and stakeholders on the proposed reforms. The Draft Public Finance Management (Prisons Enterprise Fund) Regulations, 2025 task force consists of a Multi-Agency Taskforce with representatives from the Kenya Prisons Service, the State Department for Correctional Services, Probation and Aftercare Services, the Office of the Attorney General and Department of Justice, and the National Treasury.

The task force is chaired by Jonah Wala, the Acting Director of Accounting Services at the Treasury. Other notable members include Emmanuel Ndunda, Assistant Commissioner of Prisons, Samfantory Kyalo, Senior Superintendent of Prisons, and Peter Njoroge, Director of Prison Enterprises. The team's mandate is to identify legal, policy, administrative, institutional, and operational constraints hindering effective service delivery by the Prisons Service.

The task force is expected to complete its consultation process within the next month. The collected proposals will then be forwarded to the Attorney General's office for drafting into a law to be presented to parliament as a bill. During a session at the Kisumu Maximum Prisons-Kodiaga, Patrick Kariri, head of the Directorate of Farms at Prisons Services, highlighted the potential of the proposed rules and guidelines to transform the entity into a significant revenue-generating organization, thereby enhancing infrastructure and services in correctional facilities.

The proposed Draft Public Finance Management (Prisons Enterprise Fund) Regulations, 2025, envision the establishment of the Prisons Enterprise Fund. This fund will be managed by a board of directors and a Chief Executive Officer responsible for its day-to-day operations. The fund's objective is to source and provide funds for the development of prison enterprises, purchase and maintain prison equipment and machinery, and find markets for finished products.

The National Treasury proposes an initial capital of Sh4 billion for the Fund or another amount as determined by parliament. The board managing the Fund will comprise five Principal Secretaries from the Ministry of Correctional Services, Treasury, Department of Industry, Ministry of Agriculture, and State Department of Vocational Training or their representatives.

Additionally, the Commissioner of Prisons and the head of Probation Services and Aftercare will be members. The board will also include two professionals from the fields of industry and agriculture with over 10 years of experience. The CEO will serve as the board's secretary. The board will be responsible for formulating policies and guidelines for the fund's activities, assets, and finances while collaborating with relevant government bodies.

The Prisons Services possess vast tracts of land suitable for income generation and have been offering vocational training for inmates in collaboration with the Department of Vocational Training. This training aims to equip inmates with skills to facilitate their reintegration into society post-incarceration. The Kenya Prisons Service manages 140 penal institutions, including 134 facilities for adult offenders and three for youthful offenders.

Data from the Prison Service indicates a current prisoner population of 54,000, with 48% being pre-trial detainees. The staff establishment comprises approximately 22,000 uniformed officers and auxiliary staff. The Kisumu maximum prison hosts 7,000 individuals, including both staff and inmates.

The ongoing construction of decentralized sewerage treatment plants at the facility presents an opportunity to reuse wastewater for other production processes, such as making briquettes.