MPs demand immediate release of Sh58.7 billion NG-CDF funds ahead of its closure

Members of Parliament have demanded the urgent release of Sh58.7 billion owed to constituencies under the NG-CDF, warning that continued Treasury delays could frustrate development projects and derail efforts to complete community initiatives before the fund’s June 2026 wind-up.

The legislators expressed concern that without prompt disbursement, constituencies may not access the full allocation for the current financial year before the court-mandated closure.

A court ruling delivered in September 2023 declared the NG-CDF unconstitutional and ordered that it be wound up by June 30, 2026.

Bondo MP Gideon Ochanda said Parliament must act quickly to ensure funds reach constituencies in time for project completion.

“We (MPs) need to work to ensure that the funds are disbursed by the end of January so that we have sufficient time to implement projects. If the fund is closed in June, we can wind it up properly,” he said.

He emphasised that the House should adjust the disbursement schedule to reflect the extraordinary situation.

“We do not need to subject the fund to multiple quarterly disbursements if we are serious. If we are talking about four quarters, it means the fourth quarter will fall when the fund is already closed, and there’s little that can be done at that time,” Ochanda added.

National Assembly NG-CDF Committee chairperson Kasim Tandaza disclosed that out of the Sh29 billion budgeted for the current financial year, only Sh5.79 billion had been disbursed to the board, leaving a deficit of Sh23.6 billion.

Presenting the committee’s progress report, Tandaza said ongoing engagement with the Treasury aims to secure the release of the remaining funds in line with the law. He also urged constituencies to adhere to timelines for submitting project proposals.

“Timeliness is important because the board is mandated to release funds only based on the approved project proposals,” he said.

Marakwet East MP Kangogo Bowen highlighted the adverse impact of delayed disbursements on small contractors and community livelihoods.

“We should avoid a scenario where CDF monies are delayed and spill into the next financial year. These are small contractors in the villages who have supplied things like cabbage, and it becomes problematic for them to wait for long periods for payment,” he said.

Bowen further expressed concern over delayed salaries for NG-CDF staff.

“Taking three or four months before the NG-CDF staff are paid is very stressful, as they have families and bills to settle. The board should consider paying them monthly instead of quarterly, as is currently the case,” he said.

He also proposed that bursaries should be treated as a first charge whenever funds are released.

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“Many students in our constituencies depend entirely on bursaries for school fees. So bursaries should be given priority,” Bowen said.

In their September 2023 ruling, Justices Kanyi Kimondo, Mugure Thande and Roselyn Aburili declared the NG-CDF Act unconstitutional for violating the principle of separation of powers and for failing to involve the Senate in its enactment.

“The National Government Development Constituency Fund (NG-CDF), as amended in 2022 and 2023, is hereby declared unconstitutional. NG-CDF and all its projects, programmes, and activities shall cease to operate on the stroke of midnight on June 30, 2026,” the judges ruled.

The decision has left over 1.2 million learners who rely on the fund for bursaries in uncertainty, amid ongoing resistance from MPs who continue to seek ways to preserve the fund despite repeated court rejections.