NG-CDF slashed by Sh12 billion in supplementary budget, raising concerns over projects, bursaries
The Sh12 billion cut comes as the Treasury adjusts allocations to cope with rising debt repayment obligations and lower-than-expected tax collections.
The National Government Constituencies Development Fund (NG-CDF) has been cut by Sh12 billion — from Sh68.2 billion to Sh56.2 billion — just weeks before the end of the 2024/25 financial year, casting doubt on the future of key development projects and student bursaries.
The Sh12 billion cut follows Treasury’s adjustment of allocations in response to mounting pressure from debt repayments and underperforming tax revenues.
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The reduction is captured in the third supplementary budget approved just before the close of the fiscal year on June 30.
At the start of the financial year last July, the State Department for Economic Planning, responsible for managing NG-CDF, had planned to develop 14,334 institutional facilities, including classrooms and other public buildings, alongside 1,593 security facilities such as police stations.
The department had also targeted the disbursement of bursaries to 1.28 million students and the provision of Social Health Insurance Fund (SHIF) cover to 27,274 elderly citizens through the NG-CDF. However, the supplementary budget does not clarify how the Sh12 billion cut will affect the implementation of these activities.
Fund's impact
In its budget reports, the State Department for Economic Planning highlights the impact of the fund over previous years.
“Between the 2021/22 and 2022/23 fiscal years, 9,364 educational facilities were constructed through the NG-CDF. It also enhanced the security sector through the construction of 790 security institutions,” the department states.
The NG-CDF programme has been one of the casualties of persistent delays in fund disbursement to counties and state agencies, caused largely by Treasury’s cash flow constraints and heavy public debt obligations.
Delays
In April, Members of Parliament summoned Treasury Cabinet Secretary John Mbadi over the continued delays in the release of NG-CDF and National Government Affirmative Action Fund (NGAAF) money.
“We have less than 10 days before the schools reopen. The children are going to go back without bursaries, and the CS has not kept his word,” Marakwet East MP Kangogo Bowen said.
Under growing pressure, Mbadi released Sh7 billion that week to address the urgent funding needs.
Initially, NG-CDF had been allocated Sh68.23 billion in the 2024/25 fiscal year, but with the cut, the amount now stands at Sh56.23 billion.
Although MPs have often used the fund to award bursaries and boost their political image at the constituency level, the High Court declared the fund unconstitutional and directed that it be wound up by June 30, 2026.
For its final year of operation in 2025/26, the Treasury has set aside Sh58 billion for the fund.
According to the budget estimates, the State Department for Economic Planning plans to construct 15,126 institutional facilities, build 1,615 security structures, and disburse bursaries to 1.3 million students under NG-CDF during that period.
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