MPs push for Sh58.7b NG-CDF funds as closure of kitty looms

Lawmakers are now pushing for the release of Sh58.7 billion NG-CDF funds allocation by January next year ahead of the looming wind-up of the fund in line with a court directive.

While decrying the perennial delays in disbursement of the National Constituency Development Fund (NG-CDF) billions by the National Treasury, MPs on Thursday expressed fears that unless the money was expeditiously released, they might not receive the total amount of funds budgeted for the current financial year by the time the court order that declared the fund illegal takes effect. 

A court ruling in September last year directed that the Fund was illegal and that it be wound up by June 2026.  

“We (MPs) need to be working to ensure that the funds are disbursed by the end of January such that we have enough space to implement projects so that if the fund is closed in June, we can close it up in a proper manner,” said Bondo MP Gideon Ochanda.

He emphasized that whereas a number of efforts to save the kitty had been initiated by the legislature, the House needed to change the structure of the disbursements in light of the extraordinary development.

“We do not need to subject it to many quarters in terms of disbursements if at all we are serious. If we are talking about four quarters, it means quarter four is going to be falling on when the fund is already closed and there’s nothing much that can be done at the time,” he added.

His sentiments were premised on a revelation by the National Assembly Committee NG-CDF chairperson Kasim Tandaza that out of the budgeted Sh29.4 billion for the current second quarter of the financial year, only Sh5.79 billion had been disbursed to the board.

While issuing a progress report on implementation of the fund on the floor of the House, Tandaza noted that the NG-CDF board was now grappling with a Sh23.6 billion deficit.

“The committee remains actively engaged with the National Treasury to ensure the remaining funds are released in accordance with the Act,” stated the chairperson.

He added, “I urge all the constituencies to adhere to the submission timelines set by the board for project proposals. Timeliness is important because the board is mandated to release funds only based on the approved project proposals.”

MP Kangogo Bowen spoke to the members’ anger caused by the delay in release of the billions noting that this was affecting livelihoods across the country.

“We should avoid a scenario where the CDF monies are delayed and cross over to the next financial year. These are small contractors in the villages who have supplied things like cabbages and it becomes problematic for them to have to wait for a long time for payment,” said Bowen.

He added, “Taking three or four months before the NGCDF staff are paid is very stressful because they have families and utilities to pay. The board should consider paying them monthly as opposed to quarterly as is the case.”

A High Court ruling delivered by judges Kanyi Kimondo, Mugure Thande and Roselyn Aburili in September last year declared the NG-CDF Act unconstitutional for violating the principle of separation of powers, and over the failure of MPs to consult the Senate when the law was enacted.

Meantime, the fate of more than 1.2 million learners, who are beneficiaries of the fund hangs in the balance due to a protracted battle between Members of Parliament (MPs) who have refused to accept its illegality, and the courts, which have defeated all attempts to rectify the fund’s status.

The kitty, which has become a legal battleground over the years, is now on its last legs. It has until June 30 of next year to conclude its operations in line with a court directive. Unaddressed issues, including planned but implemented constituency development projects and unpaid pending bills, also loom large as the NG-CDF approaches its closure.