New Bill seeks to increase CDF allocation by Sh20 billion

Igembe South MP John Paul Mwirigi. [Boniface Okendo,Standard]

Constituencies will receive an additional Sh20 billion in allocations through the National Government Constituencies Development Fund (NG-CDF) if a proposed law is passed.

The National Government Constituencies Development Fund (Amendment) Bill, 2022 proposed by Igembe South Member of Parliament John Paul Mwirigi seeks to increase the minimum allocations the National Treasury disburses to constituencies each year.

"The principal object of the Bill is to amend Section 3 of the National Government Constituencies Development Fund Act, 2015 to provide for the adjustment of the minimum amount of money to be allocated to the NG-CDF from two-and-a-half per cent to three-and-a-half per cent of the national covernment's share of revenue," says the Bill.

Last year, Treasury allocated Sh41.7 billion to the NG-CDF, translating to 2.98 per cent of the national government's share of revenue that stood at Sh1.3 trillion. This amount was similar to that allocated in the 2020-21 financial year.

If approved, the proposal will see the 290 constituencies get Sh61 billion in allocations from the NG-CDF in the 2022-23 financial year based on total revenue projections of Sh1.7 trillion allocated to the national government.

This will mark an increase of 48 per cent compared to the previous two years, giving each of the constituencies approximately Sh189 million in equal share, up from Sh129 million disbursed last year.

This is the latest attempt in recent months seeking to increase the allocation to counties.

Another proposed law, the National Government Constituencies Development Fund (Amendment) Bill, 2021, is currently in parliament and seeks to double the minimum allocation to five per cent of national government's sharable revenue.

The Bill has been proposed by Butere Member of Parliament Tindi Mwale and, if enacted, could push constituencies' allocations to Sh81 billion.

In a report on the consideration of the Bill, the NG-CDF Select Committee last month said the fund has executed numerous development projects across the constituencies but is hampered by inadequate funding.

"These challenges include increase in demand for the CDF funds by constituencies on development projects, high population growth, insufficient technical support hence delay in projects implementation and Covid-19 protocols," the committee said in its report to the National Assembly.