Revised formula unlocks Sh21.7bn CDF for allocation

A revised allocation formula for the Sh21.7 billion Constituency Development Fund will be announced Monday, unlocking an impasse that has delayed the roll-out of projects since July.

CDF select committee chairman Moses Lesonet said that the Ministry of Devolution and Planning would release the new criteria which accommodates changes in the CDF Act.

“The ministry will be tabling the allocations for this financial year for each of the 290 constituencies this Monday,” said Mr Lesonet by phone.

“The delay was due to changes to the CDF Act which resulted in the change of the allocation formula to the constituencies.”

The Treasury allocated Sh21.7 billion to the ministry for funding CDF projects across the country in the current financial year.

The Constituencies Development Board said that it did not discuss new projects proposals by MPs in August due to the absence of the disbursement schedule.

MPs are currently spending Sh6.3 billion that was carried over from the last financial year. The amount includes Sh1.3 billion funding secured by the Budget and Appropriation Committee in June.

According to section 29 of the CDF Act 2013, the board is supposed to submit a monthly report to the select committee indicating project proposals received from constituencies in the preceding month and the approval status of such projects.

The board is also expected to give the status of disbursements of funds to the constituencies for that preceding month.

The Act also requires the board to ensure that the list of projects forwarded to it by each constituency, is, upon approval, funded, explaining why it could not consider proposals without the disbursement formula.

(READ: Marginalised regions biggest losers in CDF law changes)

According to the report tabled on Wednesday by Leader of Majority Aden Duale, 110 constituencies received full allocation and spent Sh10.97 billion in the last financial year.

Another 29 that received 50 per cent of their entitlements spent Sh2.8 billion leaving a balance of Sh801 million during the year under review. A further 43 constituencies which received half of their allocations did not spend Sh2.2 billion.

The report shows that 13 constituencies which received statutory allocations only Sh213 million out of a total allocation of Sh1.4 billion. A similar number of constituencies received less than 30 per cent of the Sh1.3 billion total allocation.

Two constituencies — West Mugirango and Kitui South — did not receive any funding owing to the freezing of their accounts by courts.

The total disbursement to constituencies in the last financial year amounted to Sh16.5 billion compared to Sh20.6 billion in the previous year.

The CDF board retains five per cent of the money for it to be used for administrative purposes.

In January, the Parliament enacted CDF Act 2013, hence effectively repealing CDF Act 2003 as amended in 2007.