Constituencies’ cash rises 20 per cent more to Sh30.9bn

What you need to know:

Each of the 290 constituencies will get Sh106.6 million.
In the current financial year, MPs shared Sh25 billion after the High Court reduced the allocation from Sh35 billion.
The Treasury has set aside the money in the 2017/18 budget under the National Government Constituencies Fund.
MPs use the fund to finance national projects such as education and security.

MPs elected in August will get 20 per cent more cash for constituencies development projects after the Treasury raised the allocation to Sh30.9 billion for the year starting July.

Each of the 290 constituencies will get Sh106.6 million following a new law that shares money from the development of constituencies equally.

In the current financial year, MPs shared Sh25 billion after the High Court reduced the allocation from Sh35 billion.
The court reduced the Treasury allocation to comply with the law that requires the money to be pegged at 2.5 per cent of the total annual revenue collected by the national government.

The ruling followed an application but The Institute of Social Accountability and the Centre for Enhancing Democracy and Good Governance which argued that the allocation of Sh35 billion was unconstitutional as it was over and above the 2.5 per cent set in law.

The Treasury has set aside the money in the 2017/18 budget under the National Government Constituencies Fund (NG-CDF) vote, formerly known as the Constituencies Development Fund (CDF).

Education and security

The MPs controlled kitty was renamed the NG-CDF following a court challenge on the constitutionality of CDF.

The MPs amended the law early this year to beat a High Court ruling which declared the CDF Act unconstitutional and gave Parliament a one year grace period to align the Act with the Constitution or the fund would cease to exist.

The changes to the Act saw the NG-CDF cease to fund projects such as water, health centres and roads which have since been taken over by county governments.

MPs use the fund to finance national projects such as education and security.

The current MPs are set to go on terminal recess on June 15 to battle for re-election in August meaning that the Sh30.9 billion would be shared out among new lawmakers.

Usually, the NG-CDF is disbursed quarterly and the fact that the current MPs’ mandate would end in August 7 means that the new legislators would be in charge of the funds.

The NG-DCF secretariat board receives projects proposals from the 290 constituencies, approves and disburses funds during the first quarter which runs between July 1 and September 31.