Why there is urgent need to replace CDF

The Nyali Constituency Development Funds (CDF) Offices in Mombasa

The Nyali Constituency Development Funds (CDF) Offices in Mombasa in this photo taken on June 27,  2022.

Photo credit: Kevin Odit | Nation Media Group

The proponents of the National Government Constituency Development Fund (NG-CDF), which the Supreme Court recently declared unconstitutional, had good intentions.

It was meant to cure imbalances in regional development brought about by partisan politics that determined resource allocation, especially during President Daniel arap Moi’s 24-years reign.

The concept, a brainchild of the National Rainbow Coalition (Narc) government, was created in 2003—shortly after President Mwai Kibaki romped into power—alongside free primary education.

Kenyans would later that year be polled by Gallup International as the most optimistic people in the world.

Combat poverty

CDF has had its shortcomings, largely misuse, but also far-reaching impact on financing development projects, particularly those aimed at combat poverty at the grassroots.

It provided additional discretionary resources for communities to spend on priority areas. It provided an opportunity for wananchi to have a stronger stake in deciding their priorities and monitoring public resource allocation.

It has been ranked as the most comprehensive form of fiscal decentralisation initiated by the state since Independence, anywhere in Africa.

Research, particularly in rural areas, has documented a significant increase in the number of public services.

But the Supreme Court ruled that the law allowing MPs to manage funds offended division of revenue and public finance law. This brought to an end a nine-year court battle between MPs and civil society.

The government has devolved all responsibilities to the county level; unfortunately, it still retains a lion’s share of the revenue collected. Efforts to remedy this failed when BBI was stopped by the courts.

Legislators must now find a way that the money that financed the CDF is not left at the national level. Pakistan, Papua New Guinea and the Philippines introduced a resemblance of CDF in the 1990s with much success.

Similar models are operational in Bhutan, Ghana, India and Zambia. We need to efficient plan and implement its successor.

Mr Obonyo is a public policy analyst. [email protected].