Treasury disburses Sh68 billion to NG-CDF board, clearing all outstanding arrears

The National Treasury has disbursed Sh68 billion to the National Government Constituencies Development Fund (NG-CDF) Board, settling all outstanding arrears after sustained pressure from Members of Parliament over delayed allocations.

On Tuesday, July 8, Treasury Cabinet Secretary John Mbadi announced the disbursement via his official X account, confirming that the release includes Sh13 billion owed from the 2023/24 financial year.

“In the spirit of fiscal consolidation for efficiency in budgeting implementation, I’m pleased to report that we’ve disbursed Sh68B to the NGCDF Board for constituency development,” Mbadi said, noting that the Treasury now has no pending arrears to constituencies.

The allocation follows months of frustration from legislators, who accused the Executive of repeatedly reneging on funding commitments. In March, during a heated parliamentary session, Kitui Central MP Makali Mulu criticised the Treasury for failing to honour its promise made during a Naivasha retreat to disburse the funds.

“I believe the Executive is taking this House for a ride. The CS Treasury had given us commitments… Nothing has been honoured by the NG-CDF board. We cannot continue this way,” Mulu said at the time.

Other legislators, including Eldas MP Adan Keynan and Funyula MP Wilberforce Oundo also raised alarm over the ripple effects of the delays, particularly on school bursaries, infrastructure projects and audit preparedness.

“This is a very serious issue… It is Kenyans who are suffering,” Keynan said.

Oundo warned, “Kenyans are likely not going to get value for money.”

With the funds now released, MPs are expected to resume stalled projects in their constituencies. The disbursement will be coordinated by the NG-CDF Board, chaired by John Olago Aluoch, while oversight will be undertaken by Parliament’s Budget and Appropriations Committee.

The development comes just days after the National Assembly unanimously passed the Constitution of Kenya (Amendment) Bill, 2025, which seeks to embed three critical development funds—the NG-CDF, the Senate Oversight Fund (SOF), and the National Government Affirmative Action Fund (NGAAF)—into the Constitution.

The Bill sailed through both the Second and Third Readings with overwhelming support. At Second Reading, 304 MPs voted in favour with none opposed, while 298 backed it during the Third Reading.

Sponsored jointly by Otiende Amollo (Rarieda) and Samuel Chepkonga (Ainabkoi), the Bill was introduced on March 12, 2025, and referred to the Departmental Committee on Justice and Legal Affairs (JLAC), which conducted extensive public participation across all 290 constituencies.

According to JLAC’s report tabled on June 17, over 98 per cent of submissions supported the proposal.

“A staggering 98.4 per cent of Kenyans support the entrenchment of these Funds. The people have spoken,” JLAC Vice Chair Guyo Jaldesa (Moyale) said.

The proposed constitutional amendment aims to provide legal protection and certainty for the three funds. NG-CDF, in particular, supports equitable delivery of government services in education and infrastructure at the grassroots.

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• clearing all outstanding arrears

SOF is intended to enhance Senate oversight over counties, while NGAAF strengthens support for marginalised groups, including women, youth and persons with disabilities.

Leader of Majority Kimani Ichung’wah praised NG-CDF as the “most impactful” grassroots fund, saying it complements rather than competes with county allocations.

“These funds have enabled the national government to fulfil its obligations in education, security and social support. They are a practical example of service delivery at the grassroots,” he said.

The Bill enjoyed bipartisan support, with legislators across the political divide citing personal and constituency-level impact.

Rarieda MP Otiende Amollo highlighted the constitutional logic behind the amendment.

“This amendment distinguishes between devolution and decentralisation and seeks to complement the spirit of equitable development envisioned in our Constitution,” he said.

Dagoretti North MP Beatrice Elachi described NG-CDF as transformative.

“There are doctors, magistrates, teachers and engineers who owe their education to this Fund. We cannot think of abandoning it just as the Competency Based Curriculum (CBC) demands new infrastructure like laboratories,” she said.

Kaiti MP Joshua Kimilu said over 280 students in his constituency benefit from full scholarships annually through the NG-CDF.

“You can see the Fund’s tangible impact in every corner,” he added.

Garissa Township MP Dekow Mohamed highlighted how the Fund bridged historic development gaps.

“Before NG-CDF, we had only three secondary schools in my constituency. Today, we have 12, with plans for more. County allocations have not delivered comparable results,” he said.

The Bill proceeded to the Senate for further consideration, having secured the required two-thirds majority in the National Assembly.