The National Assembly on Wednesday ejected the Equalisation Fund Board from a committee session after Members of Parliament raised serious concerns about the misuse of billions of shillings meant to uplift marginalised communities through basic services like water, roads, electricity, and health facilities.

The Finance and National Planning Committee of the National Assembly, led by Molo MP Kuria Kimani, accused the board of straying from its core constitutional mandate and funding projects that are outside its scope.

Lawmakers questioned why the Fund had spent public money on things such as cabro paving, street lighting, staff housing, and kitchen renovations instead of essential services as outlined in the Constitution.

The committee expressed dismay that the Fund had undertaken projects like classroom construction, which fall under the National Government Constituencies Development Fund (NG-CDF), while also duplicating functions that are the responsibility of county governments.

MPs flagged inconsistencies in the status of many of the 310 ongoing projects, questioning the integrity of the data presented.

Kuria Kimani pointed to a troubling example of two irrigation schemes in the same area, where five acres were developed at a cost of Sh2.6 million, while ten acres were allocated just Sh3.6 million.

“There are some questionable projects like construction of a staff house at Chalaluma dispensary in Witu, Lamu at a cost of Sh6.2 million. If projects are this arbitrary, how can we ensure value for money?” Kimani asked.

He went on to warn, “The projects are so diverse that even if you allocate the fund for 10 years, it will never make sense.”

The committee also took issue with inaccurate reporting, highlighting a bridge project in Turkana South that the Fund reported as only 2 percent complete, while area MP John Ariko, who is also the committee’s vice chairperson, maintained it was 40 percent done.

“This board is presenting misleading reports that casts doubt on the accuracy of its project data,” Ariko said. “The information presented to the Committee is wrong in the first place. This board has ignored the law and is implementing projects that were not envisioned.”

Kitui Rural MP David Mboni questioned the rationale behind the Fund supporting projects that could easily be handled by other government entities.

"The Board and Commission on Revenue Allocation (CRA) have diluted the objective of this fund. It was to address the inequalities in Sessional Paper No.10 of 1965,” Mboni stated.

In response, Board Chairman Mahboub Mohamed and CEO Guyo Boru insisted the Fund only implements projects identified by the CRA, and blamed counties and national agencies for implementation failures.

“The Equalisation Fund has no role in identifying beneficiaries and needs of a region. This is done by the CRA,” Mohamed said.

He added that delays in fund disbursement had contributed to audit queries and project backlogs. “The unpredictable movement of funds has resulted in many audit queries. We have people queuing for pending bills,” Mohamed explained.

Mohamed told the committee that by the end of June 2025, the Treasury owed the Equalisation Fund a total of Sh80 billion. Of this amount, only Sh39.89 billion had been appropriated, and just Sh15 billion released to the Fund.

Tensions escalated when the committee established that project data presented by the board did not reflect the situation on the ground, prompting Kimani to adjourn the session.

"Looking at projects done, they are spread too thin and are outside the mandate of the Fund. One is left to wonder whether this Fund has really created any impact," Kimani remarked. “If you continue to do all manner of projects from installation of cabros to staff houses, will it serve the purpose for which the Equalisation Fund was established?”