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Treasury yet to release Sh35.5bn for constituency projects

 National Treasury building
The National Treasury building in Nairobi. FILE PHOTO | NMG 

The Treasury is holding Sh35.5 billion belonging to the Constituencies Development Fund (CDF), official data shows, implying a longer wait for implementation.

The bulk of the balances that the Treasury has not remitted to the National Government Constituencies Development Fund (NG-CDF) relates to activities planned for this financial year.

The Treasury has not released Sh30.5 billion for new projects or completion of ongoing ones up to June.

Data submitted by the NG-CDF board and tabled in the House by the Leader of Majority Aden Duale shows Sh4.9 billion arrears for the past three financial years. The CDF board did not receive a balance of Sh2.3 billion in 2014/15, Sh2.2 billion in the year 2013/14 and Sh489.3 million in 2011/12.

In the financial year 2019/20, Parliament allocated the MPs-led Fund Sh41.7 billion, out of which Sh11.2 billion had been released to the 290 constituencies as at end of December 2019.

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The NG-CDF Act, 2015 sets aside 2.5 percent of the total revenue raised nationally to be shared among the constituencies.

Out of the CDF budget of Sh41.7 billion, each of the 290 constituencies has been allocated Sh137 million for development in the year to June 2020.

In 2014, MPs unanimously voted to increase the minimum amount of money allocated to each of the 290 constituencies to Sh100 million.

LAND AND BUILDINGS

This effectively raised the share of the funds for 82 electoral areas that were then getting less than this figure.

The resolution was made when MPs endorsed amendments to the Constituency Development Fund (CDF) regulations. Section 22 of the constituencies fund law provides that it will only support activities in respect to national government functions, leaving devolved functions to county governments.

The funding shall be for a complete project or a defined phase and may include acquisition of land and buildings.

“Projects may include the acquisition of vehicles, machinery and other equipment for the constituency.

“Sport activities shall be considered as development projects for purposes of this Act, but shall exclude cash awards, provided that the allocation to such activities does not exceed two per centum of the total allocation of the constituency in that financial year,” the law states.

In quarterly report to Parliament covering October 1 to December 31, 2019, the CDF board says it deliberated on project proposals from 288 constituencies.

Funyula and Isiolo South constituencies did not submit their project proposals in the period under review.

The board said the two constituencies’ committees had been asked to submit their project proposals by end of January 2020.

NO RESTRICTION

“The NG-CDF board did not impose restriction on any constituency account during the second quarter of 2019/20 financial year,” Yusuf Mbuno, the acting chief executive officer of the board said.

During the October to December 2019 period, the board said 227 constituencies received at least 15 percent allocation totalling Sh6.4 billion.

Another 33 constituencies received Sh4 million each while the board secretariat allocation of five percent of the total annual CDF budget did not receive a penny.

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