The National Treasury has removed an allocation of Sh12 billion from MPs’ kitty; the national government constituencies development fund (NG-CDF).
In the third supplementary budget passed barely two weeks to the end of the current fiscal year on June 30, Treasury slashed the NG-CDF budget from Sh68.2 billion to Sh56.2 billion.
When the fiscal year started last July, the State Department for Economic Planning, which administers NG-CDF, had targeted to develop 14,334 institutional facilities such as classrooms and other government institutions besides 1,593 security facilities such as police stations.
The State department also planned to award bursaries to 1.28 million students and cater for Social Health Insurance Fund cover for some 27,274 elderly persons through the NG-CDF.
It was unclear in the supplementary budget how the Sh12 billion budget cuts would affect implementation of the planned projects.
The State Department for Economic Planning says that between 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 state department notes in budget documents.
NG-CDF has been one of government programmes affected by Treasury’s delays in release of funds to counties and State agencies following revenue shortfalls and hefty public debt payments.
In April, MPs summoned Treasury Cabinet Secretary (CS) John Mbadi following delays in releasing NG-CDF and National government affirmative action funds.
“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,” said Marakwet East MP Kangogo Bowen.
Following the pressure, Mr Mbadi released Sh7 billion that week. NG-CDF had an original budget of Sh68.23 billion for the current fiscal year, which now comes down to Sh56.23 billion.
MPs have been using the kitty for political mileage when they offer bursaries to learners, but the High Court declared the fund unconstitutional and directed that it ceases operations by June 30, 2026.
For the final year of its operation (2025/26), the Treasury has allocated the fund Sh58 billion. In the budget for the year starting July 2025, the State department plans to develop 15,126 institutional facilities through the NG-CDF, 1,615 security facilities and disburse bursaries to 1.3 million students.
In an effort to save the kitty from slipping out of their control, MPs and senators in recent weeks proposed bills to entrench the NG-CDF, NGAAF and a new fund for senators, Senate Oversight Fund, in the constitution.
