Treasury releases Sh7 billion CDF funds after pressure from MPs
He explained that January, February, and March are the most challenging financial months, highlighting the heavy financial commitments the Treasury faces, such as school capitation and loan repayments.
The Treasury on Wednesday released Sh7 billion towards the National Government Constituencies Development Fund (NG-CDF), following pressure from Members of Parliament over delayed disbursements.
Appearing before MPs, Treasury Cabinet Secretary John Mbadi said the delays were caused by unspent funds from the previous financial year and the Treasury’s need to meet other financial obligations, including loan repayments and school capitation.
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“This House will remember, there was a carryover of CDF from the last Financial Year (FY), money that was not disbursed, money that was appropriated to the NG-CDF but was not disbursed. For the 2023/24 FY, out of the total Sh57.9 billion, only Sh44.4 billion was disbursed, leaving a gap of Sh13.5 billion, which was then added to the appropriation of 2024/25.”
He noted that the Ministry had committed to releasing Sh7 billion to the NG-CDF board, starting in September last year. Mbadi said Sh7 billion was released in December and another Sh7 billion in February. However, he admitted that no funds were disbursed in January or March due to other financial obligations.
“In the month of April, and that is not long ago, we released another Sh7 billion today,” Mbadi said.
He explained that January, February, and March are the most challenging financial months, highlighting the heavy financial commitments the Treasury faces, such as school capitation and loan repayments.
“In January alone, we paid Sh75 billion in loans and an Sh80 billion salary wage bill,” he said, adding that these financial commitments limited the capacity to release funds for other operations.
“We had to pay for Standard Gauge Railway (SGR) loans, and the salary adjustments for Junior Secondary School (JSS) teachers, lecturers, and discipline forces further increased the financial burden.”
The CS also noted that the budget for the National Government Affirmative Action Fund (NGAAF) had been reduced from Sh3.2 billion to Sh2.7 billion after the supplementary budget.
“Today, we released the balance of Sh1.1 billion, so now we have zero balance for NGAAF,” he said.
MPs had protested the delays, citing the negative impact on students and community projects.
During the session, Bumula MP Wanami Wamboka expressed frustration over the Treasury’s repeated pledges. He criticised Mbadi, noting that many of the promises made by the CS were not new and had been reiterated during previous discussions in Naivasha.
“A lot of the things the Minister has said are the things he said in Naivasha. Mbadi, we respect you, but when you went to the Treasury as an expert, we expected you to be sure about the things you are saying,” he said.
He emphasised the need for the Treasury to honour its commitments, stressing, “What we are expecting from you today is Sh21 billion—the bare minimum.”
Kitutu Masaba MP Clive Gisairo echoed Wamboka’s sentiments, urging Mbadi to release Sh21 billion by the end of April. “If not today, then by the end of this month, and the rest to be cleared by next month. Otherwise, this is just another promise.”
Homa Bay Woman Rep Joyce Osogo raised concerns about the release plan for NGAAF, urging the CS to follow the same approach as NG-CDF with a monthly release of Sh7 billion.
“We request that this money, at the beginning of every FY, be released as a lump sum,” she added.
In response, Mbadi expressed caution about making promises without confirmed resources.
“I want to hesitate from making a commitment with money that has not come, but if that money comes, I will do more than I have promised,” he assured MPs.
“By the end of this financial year, I will ensure all the Sh68 billion for NG-CDF is cleared.”
National Assembly Speaker Moses Wetang'ula, while acknowledging the challenges, urged Mbadi to avoid similar delays in the future.
“The little we have got is better than nothing, but we encourage the Minister to do much more,” he said.
“And going forward, we expect you to avoid the traffic of January, February, and March. Remember, this is not your money—this is the money of the people of Kenya that you represent.”
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