Economy

Stalemate on Sh27bn CDF cash intensifies as MPs dig in

kimunya

Majority Leader Amos Kimunya. PHOTO | NMG

A standoff over the delayed disbursement of Sh27 billion owed to the Constituencies Development Fund (NG-CDF) intensified Thursday with MPs disrupting National Assembly proceedings for the third time since last week.

Attempts by the Leader of Majority Amos Kimunya and National Assembly Speaker Justin Muturi to pacify MPs failed as lawmakers stalled a special session called to pass the Supplementary Budget I of 2019/20 and the Division of Revenue Bill 2021.

MPs are demanding payment of Sh14 billion in arrears for the 2019/20 financial year and Sh13.7 billion in the current fiscal year.

The Treasury allocated the NG-CDF Sh41.7 billion in the current financial year. Out of this amount Sh14 billion has been released which went to settle arrears for the last financial year and Sh13.7 billion for the current year.

Last week MPs paralysed two sessions of debate demanding clearance of the arrears and release of the balance of the current financial year’s CDF cash.

Mr Kimunya said Sh4 billion was released to constituencies on Monday while Sh2 billion hit the accounts on Wednesday.

“There is Sh13 million in our constituencies as we speak. If your constituency has not received this money for some reason, then check with NG-CDF board,” he said.

MPs, however, booed Mr Kimunya accusing him of misleading them since the money had not hit their constituency accounts.

Mr Muturi had to adjourn the House for 45 minutes to allow MPs to retreat for an informal meeting popularly known as the Kamukunji to grill Mr Kimunya on the Treasury proposal.

Mr Kimunya irked MPs when he announced that the Treasury had by Wednesday released Sh28 billion in the financial year starting July 1, 2020.

He said the Treasury had committed to clear the entire Sh41/7 billion CDF cash by the end of the third week of June 2021.

“They have committed to pay Sh2 billion every week. They have said they will clear the entire balance by the third week of June,” Mr Kimunya said.

He said the Budget and Appropriations Committee (BAC) said they had factored Sh13.7 billion in the supplementary estimates I to allow the Treasury to wire the balance dating back to 2011.