Parliament in push to raise CDF by Sh3bn starting July

Members of the National Assembly in session. FILE PHOTO | NMG

What you need to know:

  • In the current financial year, CDF allocations totalled Sh31.62 billion, according to data in the NG-CDF website.
  • Each of the 290 constituencies received a flat figure of Sh109.04 million to finance development projects.
  • The CDF had for long been popular with MPs as they use taxpayer funds to initiate development projects at the constituency level as a bait for endearing themselves to voters.

The National Assembly Budget and Appropriation Committee (BAC) wants the Constituency Development Fund (CDF) increased by Sh3.04 billion in the financial year starting July.

This is contained in proposals tabled in Parliament which will see the fund get more money amid audit reports pointing at wastage across constituencies.

Auditor-General Edward Ouko’s report on the National Government Constituencies Development Fund (NG-CDF) for the year ended June 30, 2017 shows that eight constituencies could not account for about Sh1 billion allocated to them.

The Mr Ouko’s report showed that some of the money for 2016/2017 financial year was used to finance functions that are the responsibility of the county governments.

In the current financial year, CDF allocations totalled Sh31.62 billion, according to data in the NG-CDF website. Each of the 290 constituencies received a flat figure of Sh109.04 million to finance development projects.

The CDF had for long been popular with MPs as they use taxpayer funds to initiate development projects at the constituency level as a bait for endearing themselves to voters.

However, a High Court ruling in February 2015 declared the CDF Act 2013 unconstitutional stating that involving MPs in the planning, approval and implementation of the CDF projects was in violation to the doctrine of separation of powers and went against accountability and good governance practices.

NG-CDF Act 2015 replaced the CDF Act 2013 effective February 2016, placing the fund under National Government CDF board to oversee CDF oversight committees set up in each constituency.

MPs have a divided opinion over allocation formula for the funds. Kiharu MP Ndindi Nyoro recently said CDF funds should be distributed according to the needs of a particular constituency, arguing that allocating a flat rate disadvantages larger constituencies.

Suna West MP Peter Musara is also pushing for NG-CDF (Amendment) Bill 2019 so as to have religious organisations allocated at least two per cent from the kitty.

National Treasury Secretary Henry Rotich is set to present the Budget at a time tax revenues have dropped in a country or rising wage bill and corruption cases.

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