CDF board nominees push for bigger cash allocation

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Economy

CDF board nominees push for bigger cash allocation


CDF

A public health facility built with money from the CDF in Magarini Constituency in Malindi. PHOTO | POOL

Nominees to the National Government Constituency Development Fund (NG-CDF) board want the allocation to the endowment increased to 3.5 percent from the current 2.5 percent of the total national revenue.

The three nominees including former Kisumu West MP Olago Aluoch, former Kajiado woman representative Janet Teiyaa, and former nominated Senator Naomi Shiyonga told MPs during their vetting that due to the success of the funds, it needs to be increased.

Read: MPs target doubling CDF kitty to Sh88bn

The nominees told the National Assembly Constituency Development Fund committee that MPs have done several successful visible projects with the funds despite getting a small share of the national revenue.

“There is a need to enhance the disbursement of the fund from the current 2.5 percent to 3.5 percent. CDF has done more in the constituencies than even what counties have done,” Mr Aluoch told the committee.

He pointed out that with five percent of the allocation remaining at the national level for the operations of the board, only 20 percent remains to be shared among the 290 constituencies.

“What remains to be shared to the constituencies to me is so small that there is a need to review it to at least 3.5 percent,” Mr Aluoch said.

Currently, the law sets aside 2.5 percent of the total revenue raised nationally to be shared among the constituencies.

The Division of Revenue Act provides for the equitable division of revenue raised nationally among the national and county levels of government.

In the 2022/23 financial year, the Treasury allocated the NG-CDF Sh44.3 billion.

Ms Teiyaa told MPs that NG-CDF has enabled children from poor backgrounds to get an education hence the achievement of the fund could not be understated.

“Most of our children are going to school because of CDF and they are actually going to schools built by CDF. Bursary funds therefore need to be increased,” said Ms Teiyaa.

Ms Shiyonga told MPs that through the fund, MPs have managed to successfully uplift lives of the less privileged in society hence its increase will only mean that more lives will be transformed.

The nominees also told the committee that there is a need for the fund to be anchored in the constitution to avoid many litigations it has faced in court that are likely to affect its successes over the years.

“The fund should be embedded in the constitution, once we have it there, we will not have these many court cases. I’m happy that it is part of the discussion going on at Bomas and I hope Kenyans will support it when the report comes out,” Mr Aluoch said.

The Supreme Court in August last year ruled that the CDF Act, 2013 violates the principle of separation of powers, a ruling that took the kitty from lawmakers, causing protests from MPs.

However, the 13th parliament dismissed the Supreme Court ruling, arguing the current fund is being implemented under a new law—NG-CDF, 2015-and not the CDF Act, 2013, which was declared unconstitutional.

Read: Supreme Court seals the fate of CDF

There are currently however two Bills in the National Assembly that seek to entrench the fund in the constitution.

The separate Bills by Matungulu MP Stephen Mule and his Gichugu counterpart Robert Gichimu aim at amending the Constitution to entrench the CDF.

The Bill seeks to amend Article 204 of the Constitution to entrench the National Government Affirmative Action Fund (NGAAF), which is controlled by 47 woman representatives.

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