The Treasury will release Sh5 billion to National Government Constituency Development Fund (NG-CDF) on Thursday with the balance of Sh42 billion being cleared in the next six months.
National Assembly Speaker Moses Wetang’ula told MPs that Treasury Cabinet Secretary John Mbadi has committed to release Sh7 billion every month starting from January to June 2025 to clear the backlog to the NG-CDF.
“I have received a letter from the National Treasury Cabinet Secretary John Mbadi committing that Sh5 billion will be released to NG-CDF on Thursday,” Mr Wetang’ula said in a communication to the House on Tuesday.
Thereafter, the Cabinet Secretary commits that Sh7 billion will be released every month to the NG-CDF board until it concludes the budgetary allocation in June.”
He said the Treasury will release Sh7 billion each for the months of January, February, March, April, May, and June.
Each of the 290 constituencies currently receives Sh137 million for the NG-CDF annually with the bulk of the money going to national government projects including the construction of schools, police stations, and bursaries.
The MPs have been demanding the release of the NG-CDF to constituencies to finance projects for the financial year 2024/25.
The NG-CDF allocation for the 2024/2025 financial year is Sh54.777 billion, a 2.3 percent increase from the previous year.
The Treasury allocated the NG-CDF Sh53.53 billion in the financial year 2023/24 and an additional Sh4.4 billion in Supplementary Budget 1, bringing the total allocation to Sh57.9 billion.
Of the Sh4.4 billion, Sh3.4 billion will be allocated to the 290 constituencies for the construction of classrooms and learning centres for the Junior Secondary School (JSS). The balance of Sh1 billion has been allocated to the 17 constituencies in Nairobi for the expansion of school infrastructures.
The NG-CDF Act states that the budget ceiling for each constituency is determined by the Board. The ceiling is calculated by dividing three-quarters of the annual allocation equally among all constituencies, plus an additional quarter divided among constituencies based on the number of wards in each.
Leader of Majority Kimani Ichung’wah while reacting to the communication made by Mr Wetang’ula said the release of the Sh5 billion will ensure that adequate resources are available for the disbursement of bursaries at the beginning of January 2025 to enable students to resume their studies.
“I encourage Members who have not submitted their project proposals to do so before January 2025. As we speak, only 90 Constituency Committees have submitted proposals to the NG-CDF board,” Mr Ichung’wah said.
“You cannot access the resources to fund your projects until the NG-CDF committees submit their proposals. The deadline for submissions of the project proposals is December 6, 2024.”
Mr Ichung’wah told the MPs to ensure their NG-CDF fund managers and chairpersons have submitted the proposals before the House breaks for the long Christmas recess on Thursday.
Mr Wetang’ula said the Treasury has confirmed that all the NG-CDF arrears for financial year 2023/24 have been disbursed.
“The long recess is awaiting you. Go and work for the people who elected you,” Mr Wetang’ula told MPs.
“John Mbadi is a former MP and a respectable Cabinet Secretary. He walked to the Speaker's office and delivered the letter himself. He would not have done that if he was not sure the disbursements had been made.”
Mr Wetang’ula said some of the returns CDF committees file with the NG-CDF board are inaccurate and lead to delays in fund disbursement.
