Alarm as 203 constituencies fail to get CDF funds on time

cash

More than 200 constituencies may not fully implement their budgets after the NG-CDF Board failed to release all the funds to the constituencies by the close of the 2022/23 financial year on June 30.

Photo credit: File | Nation Media Group

More than 200 constituencies may not fully implement their budgets after the NG-CDF Board failed to release all the funds to the constituencies by the close of the 2022/23 financial year on June 30.

This is despite the National Treasury having released the Sh47.2 billion that was allocated to the Board for onward disbursement to the 290 constituencies, with the delay linked to the untimely submission of development proposals to the fund’s administrator.

The delay is now affecting operations and payment of pending bills by CDF committees in 203 constituencies, with only 87 having received their full allocation totalling Sh12.5 billion.

The status report by the NG-CDF Board on the receipts and disbursements as at July 7, 2023 says the remaining 203 constituencies have received between 37 per cent and 99.9 per cent of the funds that were allocated to them.

This, according to the NG-CDF Board, leaves a balance of Sh3.2 billion owed to the 203 constituencies after a total disbursement of Sh26.3 billion.

In the status report, NG-CDF Board says it only received project proposals from 286 constituencies in line with Section 16(a) of the NG-CDF (amendment) Act 2022.

All the constituencies were required to submit their project proposals by January 13, 2023.

The status report was presented to the National Assembly, with MPs expressing hope that the kitty’s performance is registering positive steps towards realising 100 per cent disbursements.

During the start of the Kenya Kwanza administration, MPs protested delayed disbursement of funds into the kitty after the Supreme Court had declared it unconstitutional.

In this new financial year, allocation to the kitty that finances the education and security infrastructure in the constituencies as well as bursaries for the needy has been increased by Sh10 billion from the Sh37.2 billion in 2022/23.

The Board says balances owed to the 203 constituencies will be carried forward into this new financial year in line with Section 7(2) of the NG-CDF (amendment) Act 2022.

The Act provides that all funds allocated to a constituency shall be cumulative and shall be carried forward from one financial year to the next.

This, the Board says, includes funds returned into the accounts in accordance with Section 6(3) or funds which are not utilised for whatever reasons.

Aldai, Luanda, Kuria East, Kandara and Kimilili constituencies are owed the highest balances of Sh95 million, Sh88.1 million, Sh88.1 million, Sh85.1 million and Sh81.2 million respectively.

Other constituencies that are owed huge balances are Barissa (Sh58.1 million), Embakasi South (Sh58.1 million), Mbeere North (Sh59.3 million), Mwatate (Sh54.2 million) and North Mugirango (Sh53.3 million).

Eleven constituencies are owed the least balances of up to Sh1 million. They are Baringo Central (Sh1 million), Gichugu (Sh640,000), Kacheliba (Sh900,009), Kesses (Sh486,209), Kilifi South (Sh225,000) and Limuru (Sh500,000).

Others are Marakwet East (Sh200,000), Saku (Sh800,000), Wajir East (Sh110,000), Webuye East (Sh800,000) and Webuye West (Sh1 million).

Through the Bunge This Week, a publication by the National Assembly, NG-CDF Committee chairperson Musa Sirma said the 2023/24 fiscal year will see the highest allocation of Sh162 million go to constituencies that have eight wards.