Shortly after the ruling on Friday evening, the National Assembly said its legal team had obtained the ruling and court papers in the hope of challenging the decision at the Court of Appeal.
“The National Assembly will also apply for the stay of the declaration of the unconstitutionality of the NGCDF Act, pending the hearing and determination of the intended appeal. The House intends to challenge the verdict on all the grounds cited by the petitioners and allowed by the court,” Parliament said in an update.
The law was declared unconstitutional on the grounds that it violated the principle of separation of powers and that the MPs failed to consult the Senate when passing the law.
Justices Kanyi Kimondo, Mugure Thande and Roselyn Aburili also ruled that the operations of the fund should cease by June 30, 2026.
“The National Government Constituency Development Fund (NG-CDF) as amended in 2022 and 2023 is hereby declared unconstitutional. The NG-CDF and all its projects, programmes and its activities shall cease to operate on the stroke of midnight on June 30, 2026,” ruled the bench, headed by Justice Kimondo.
While quashing the Act, the judges faulted the MPs for encroaching on the mandate of the national and county governments.
According to the court, a constituency is not a delivery unit and allocating the billions to the MPs was a waste of taxpayers' money.
The ruling follows a case filed by activists Wanjiru Gikonyo and Cornelius Oduor, who argued that the NG-CDF violated the principles of the Public Finance and Management Act and division of revenue, which states that revenue should be shared between the national government and counties.
“It gives the MP the means to build up local patronage that advantage him or her in elections, thus compromising principles of fair elections and integrity, sustains corrupt practices, intrudes on the functions or powers of both national and county governments,” Mr Oduor said.
In January this year, a delay in the disbursement of the funds brought the National Assembly to a standstill, with MPs threatening to impeach former Treasury Cabinet Secretary Njuguna Ndung'u over the delays.
The CDF Act, enacted in 2003, stipulates that the government set aside at least 2.5 percent of the last audited revenue approved by the National Assembly to be paid into the fund for use at constituency level.
In 2020, this was declared unconstitutional and the judges gave MPs one year to amend the laws to align them with the constitution.
The MPs came up with the NG-CDF, which has been declared unconstitutional.
