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Post Reply: National Assembly Passes Landmark Bill to Entrench NG-CDF, NGAAF, and Senate Oversight Fund in Kenya's Constitution

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on July 2, 2025, 9:38 am</div><div id="pl-6768"  class="panel-layout" ><div id="pg-6768-0"  class="panel-grid panel-no-style" ><div id="pgc-6768-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-6768-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="0 0 []">The National Assembly of Kenya unanimously passed the Constitution of Kenya (Amendment) Bill, 2025, on Tuesday, July 1, 2025, paving the way for the constitutional entrenchment of three critical development funds: the National Government Constituencies Development Fund (NG-CDF), the National Government Affirmative Action Fund (NGAAF), and the Senate Oversight Fund (SOF). The bill, which has sparked significant public and legal debate, now heads to the Senate for further review, where it requires a two-thirds majority to be enacted into law.</p>
<p dir="ltr">The passage of the bill marks a significant step toward securing the legal foundation of these funds, which have been instrumental in driving grassroots development, education access, and equitable resource distribution across Kenya's 290 constituencies. The National Assembly's decisive vote, with 304 members supporting the bill during the second reading and 298 in the third reading, reflects broad bipartisan consensus on the importance of these funds for Kenya's socio-economic progress.</p>
<p dir="ltr">Introduced on March 12, 2025, by Rarieda MP Otiende Amollo and Ainabkoi MP Samuel Chepkonga, the Constitution of Kenya (Amendment) Bill, 2025, seeks to provide constitutional protection to the NG-CDF, NGAAF, and the newly proposed Senate Oversight Fund. These funds have faced legal challenges in recent years, with critics questioning their constitutional validity. The amendment aims to ensure their continuity by embedding them in the country's supreme law, safeguarding them from potential abolition or redirection to county governments.</p>
<p dir="ltr">The NG-CDF, operating on a budget of Ksh54.7 billion, has been a cornerstone of community development since its inception. It finances critical projects such as school infrastructure, bursaries for needy students, and local development initiatives across all 290 constituencies. The NGAAF, administered by the 47 County Women Representatives, supports marginalized groups, including women, youth, persons with disabilities, elderly persons, and vulnerable children, by providing financial resources for social and enterprise development. The Senate Oversight Fund, a new addition, is designed to empower senators to monitor the use of public resources by county governments, enhancing accountability and oversight.</p>
<p dir="ltr">The bill's passage followed an extensive public participation exercise conducted by the National Assembly's Departmental Committee on Justice and Legal Affairs (JLAC) from May 5 to May 7, 2025. The committee held hearings across all 290 constituencies and at the offices of the 47 County Women Representatives, gathering feedback from thousands of Kenyans. According to the JLAC's report, released on June 17, 2025, over 98 percent of participants expressed overwhelming support for entrenching the funds in the Constitution.</p>
<p dir="ltr">Residents from constituencies such as Westlands and Kiminini in Trans Nzoia County voiced strong approval during these forums. In Westlands, over 600 residents participated, sharing stories of how NG-CDF-funded projects had transformed their communities. Phenny Achieng, a resident of Gachie, highlighted the construction of modern dormitories at Hospital Hill High School, while Jemimah Auma from Kibagare credited NG-CDF bursaries for enabling her children to pursue education. In Kiminini, MP Kakai Bissau described the fund as a "catalyst for dignity, access, and opportunity," emphasizing its role in improving education, infrastructure, and social welfare.</p>
<p dir="ltr">The legislative process was not without challenges. National Assembly Speaker Moses Wetang'ula underscored the bill's national importance, issuing a stern warning to MPs against traveling abroad ahead of the crucial vote on July 1, 2025. To ensure quorum, Wetang'ula granted special permission for four ailing MPs, Clement Sloya (Sabatia), Joseph Samal (Isiolo North), Abraham Kirwa (Mosop), and Catherine Wambilianga (Bungoma County Woman Representative), to cast their votes remotely from their hospital beds or resting locations. The bill's unanimous approval, with no votes recorded against it, underscored the legislators' commitment to securing the funds' future.</p>
<p dir="ltr">Proponents of the bill argue that entrenching the NG-CDF, NGAAF, and SOF in the Constitution fulfills the spirit of the 2010 Constitution, which emphasizes equitable resource sharing and decentralized development. Kitui Central MP Makali Mulu dismissed claims that abolishing these funds would redirect resources to county governments, stating, "Those who think this money will go to counties are mistaken. It would only be available through conditional grants from the national government." Rarieda MP Otiende Amollo, a co-sponsor of the bill, emphasized that the funds complement, rather than duplicate, county budgets, addressing critical gaps in education and infrastructure that counties are legally restricted from funding.</p>
<p dir="ltr">Tharaka MP George Murugara further defended the amendment, noting that NG-CDF has been a lifeline for grassroots communities, particularly in providing bursaries for students from disadvantaged backgrounds. He argued that the funds' constitutional protection ensures their continuity, shielding them from legal challenges and budget cuts. The NG-CDF, for instance, faced a Ksh12 billion reduction in the supplementary budget, raising concerns among MPs about the sustainability of ongoing projects and bursary programs.</p>
<p dir="ltr">The NGAAF, administered by County Women Representatives, has been praised for its role in empowering marginalized groups. The fund supports initiatives such as enterprise development, social welfare programs, and financial assistance for women, youth, and persons with disabilities. The proposed Senate Oversight Fund aims to strengthen the Senate's role in overseeing county governments, ensuring transparency and accountability in the use of public resources.</p>
<p dir="ltr">Despite widespread public support, the bill has not been without controversy. The Katiba Institute, a constitutional watchdog, challenged the push to entrench the funds, arguing that they may encroach on county government mandates. The institute's concerns were echoed by some legal experts, who questioned whether the funds align with the devolved system established by the 2010 Constitution. On June 5, 2025, Justice Lawrence Mugambi of the High Court ruled that the National Assembly could debate and transmit the bill to the Senate but could not proceed to presidential assent pending the court's final determination.</p>
<p dir="ltr">Critics have also raised concerns about accountability in the management of NG-CDF funds, with reports of missing beneficiary lists and incomplete documentation in bursary disbursements. These issues have prompted calls for greater transparency and stricter oversight to ensure the funds are used effectively. However, supporters of the bill argue that entrenching the funds in the Constitution will provide a legal framework to strengthen accountability mechanisms, ensuring that resources are allocated equitably and transparently.</p>
<p dir="ltr">With the National Assembly's approval, the bill now moves to the Senate, where it must secure a two-thirds majority to pass. The Senate's review is expected to be rigorous, given its role in protecting devolved governance and ensuring that the amendment aligns with the constitutional framework. If approved by the Senate, the bill will be forwarded to President William Ruto for assent, officially embedding the NG-CDF, NGAAF, and SOF in the Constitution.</p>
<p dir="ltr">The passage of the bill in the National Assembly has been hailed as a victory for grassroots development and education access. MPs and residents alike have emphasized the transformative impact of these funds, particularly in underserved communities. As the bill moves to the Senate, Kenyans await the outcome of this landmark legislation, which could shape the future of decentralized development and resource allocation in the country.</p>
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