Treasury outlines plan to disburse Sh23.7 billion CDF fund

The National Treasury has developed a schedule over how it will disburse the Sh23.7 billion in National Government-Constituency Development Fund (NG-CDF) for the remaining three months of the current financial year.

This came as the MPs during the House special sitting on Thursday last week, threatened to shoot down the Division of Revenue Bill (DoRB) 2021 over the delays in releasing the funds.

The MPs’ mood forced the House leader of majority Amos Kimunya on request from a section of the MPs to have the Bill that is critical in dividing revenue between the national and county governments stood down until today.

The NG-CDF money includes the Sh10 billion balance of the Sh41 billion allocated to NG-CDF kitty in the current financial year with Sh13.7 billion in arrears for the 2019/20 financial year.

National Treasury Cabinet Secretary Ukur Yattani faced with the danger of the collapse of the revenue Bill, gave an undertaking to have Sh2 billion of the Sh10 billion balance for the current financial year, disbursed every week to the NG-CDF board accounts until April 30, 2021.

The arrears for the last financial year is to be cleared by June 27, 2021, three days to the end of the current financial year.

“The National Treasury will endeavor to ensure that this allocation is fully disbursed by June 27, 2021 using the aforementioned disbursement arrangement,” Mr Yattani says in the letter of March 18, 2021 to House Clerk Michael Sialai.

The Sh13.7 billion in arrears for the 2019/20 financial year has been included in the supplementary budget for the 2020/21 financial year.

The framework for disbursing the funds, according to Mr Yattani, follows a consultative meeting held on Friday 12, March 2021.

The meeting involved Mr Kimunya, Budget and Appropriations Committee (BAC) chairman Kanini Kega and the National Treasury.

House rules state that if a Bill is shot down, it can only be reintroduced after six months.

During the special sitting last week, the MPs were adamant that they will only consider the revenue Bill if the CDF money is released to the constituency accounts.

“Let us not throw away the baby and the bathwater. I am not sure how the vote will go. This House must make decisions beneficial to the people of Kenya. CDF is beneficial to the people of Kenya,” Garissa Township MP Aden Duale noted.

Recent court rulings have dictated that the national government estimates and the Appropriations Bill cannot be passed before the revenue Bill has become law.

The constitution provides that the National Treasury presents to the National Assembly the national government estimates by April 30 every financial year.

Suna East MP Junet Mohamed noted that “this CDF matter is emotive, it concerns the constituencies.”

“We can take some time to agree and come to this House to pass all the laws required to be passed,” Mr Mohamed said.

Nominated MP Cecily Mbarire told the House that without CDF, a member of the National Assembly is “useless.”

“It is time this parliament reasserts its authority. Put your feet down when push comes to shove. It does not help to use force to push the agenda on this floor. Stop threats. I have never seen members get to the level of where you have to use threats to get money,” she added.

Endebess MP Dr Robert Pukose was adamant that until the CDF money is released, the House will not approve any business from the executive.

“We need to have money in our accounts before this matter comes to the House on Tuesday next week. It is possible for them to respond to the needs of these members,” said Dr Pukose adding, “the children need classes.”