The National Treasury is rushing to release billions of shillings due to the National Government Constituency Development Fund (NG-CDF) before the fund is set to end on June 30, 2026, following a High Court ruling.
Last year, a three-judge bench declared the NGCDF Act unconstitutional, stating it breached the principle of separation of powers. The court directed that all projects, programmes, and activities under the fund must stop after midnight on June 30, 2026.
Treasury Cabinet Secretary John Mbadi, in a communication sent to Parliament via the office of the Majority Leader, assured lawmakers that the full Sh58 billion allocated to the NG-CDF will be released before the fund ceases.
He further indicated that from October, each constituency will receive at least Sh7 billion per month to ensure ongoing projects for the current financial year continue without disruption.
“The National Treasury has assured this House that all the monies will be disbursed in time, and the CS is ready to appear before us at any time to clarify the matter,” Deputy Majority Leader Owen Baya told Parliament.
Despite these assurances, MPs raised concerns that delays in fund disbursement could halt ongoing projects in constituencies. If the appeal on the court ruling fails in favour of Parliament, all NG-CDF activities will stop next year.
Kitutu Masaba MP Clive Gisairo highlighted that the first quarter of the new financial year is ending with no funds yet released.
“As MPs, we will be walking a tightrope if we don’t start speaking out now. The CDF board has not yet received the allocation for the first quarter, which amounts to 19.5 billion shillings...,” he said, warning that the board could be in arrears of Sh39 billion by the second quarter.
The NG-CDF was first proposed in 2003 by then Ol Kalou MP Engineer Muriuki Karue, who sponsored the CDF Bill 2003 as a private member's bill.
The legislation was enacted later that year. Parliament is now working to safeguard the fund under the Constitution of Kenya (Amendment) Bill 2025, which aims to enshrine three major funds, the NG-CDF, the Senate Oversight Fund (SOF), and the National Government Affirmative Action Fund (NG-AAF), in the constitution.
Co-sponsored by Rarieda MP Otiende Amollo and Ainabkoi MP Samuel Chepkong’a, the Bill passed the National Assembly in July with 304 MPs voting in favour, meeting the two-thirds requirement.
The Bill has since moved to the Senate for consideration, but the High Court last week barred Parliament from sending it to President Ruto for assent.
The Law Society of Kenya argued the Bill violates separation of powers and contradicts previous court rulings on the CDF and NG-CDF. They also noted that the funds overlap with county government functions, risking inefficiency and conflicts.
The Council of Governors echoed these concerns, saying the Bill undermines the separation of powers and county mandates.
Since its creation, the CDF has financed 3,087 schools and provided bursaries to 1.2 million needy students, dedicating roughly Sh15 billion annually to bursaries. In partnership with the Ministry of Education, the fund has also supported the establishment of 130 Technical Training Institutes and 61 new Kenya Medical Training Colleges, enrolling a total of 13,511 students.