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Post Reply: MPs Demand Urgent Release of Sh58.7 Billion NG-CDF Funds Ahead of June 2026 Closure

<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 October 13, 2025, 7:58 am</div><div id="pl-8253"  class="panel-layout" ><div id="pg-8253-0"  class="panel-grid panel-no-style" ><div id="pgc-8253-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-8253-0-0-0" 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="1 1 []">Members of Parliament are pressing for the immediate release of Sh58.7 billion in National Government Constituency Development Fund (NG-CDF) allocations, citing significant delays by the Treasury that threaten to disrupt critical community development projects. With a court-mandated closure of the fund looming on June 30, 2026, legislators warn that failure to disburse these funds promptly could jeopardize the completion of ongoing initiatives and leave constituencies unable to utilize their full allocations for the current financial year.</p>
<p dir="ltr">The urgency stems from a September 2023 court ruling that declared the NG-CDF unconstitutional, ordering its wind-up by mid-2026. The decision, made by Justices Kanyi Kimondo, Mugure Thande, and Roselyn Aburili, found that the NG-CDF Act violated the principle of separation of powers and lacked Senate involvement in its enactment. The ruling mandates that all NG-CDF projects, programs, and activities cease by midnight on June 30, 2026, creating a tight timeline for constituencies to execute their plans.</p>
<p dir="ltr">Bondo MP Gideon Ochanda emphasized the need for swift action to ensure funds are disbursed by January's end to allow sufficient time for project implementation. He proposed adjusting the disbursement schedule to accommodate the fund's impending closure, arguing that adhering to the standard quarterly releases would be impractical. If funds are released in the fourth quarter, it would coincide with the fund's closure, rendering them unusable. Ochanda stressed the importance of a streamlined approach to ensure constituencies can wind up operations effectively.</p>
<p dir="ltr">Kasim Tandaza, chairperson of the National Assembly NG-CDF Committee, revealed that only Sh5.79 billion of the Sh29 billion budgeted for the current financial year has been disbursed, leaving a shortfall of Sh23.6 billion. In a progress report, Tandaza noted ongoing discussions with the Treasury to secure the remaining funds in compliance with legal requirements. He also urged constituencies to submit project proposals promptly, as the NG-CDF board can only release funds based on approved submissions.</p>
<p dir="ltr">Marakwet East MP Kangogo Bowen highlighted the ripple effects of delayed disbursements on local communities, particularly small-scale contractors who rely on timely payments for their livelihoods. Delays in payments for supplies, such as agricultural produce, create financial strain for these contractors. Bowen also raised concerns about NG-CDF staff, who face delays of up to three or four months in receiving their salaries. He advocated for monthly salary payments to alleviate the financial burdens on staff with families and bills.</p>
<p dir="ltr">Additionally, Bowen called for prioritizing bursaries, which support over 1.2 million learners nationwide. With the fund's closure approaching, the uncertainty surrounding these bursaries has sparked concern, as many students depend on them for school fees. Treating bursaries as a first charge, Bowen argued, would ensure continued educational support for vulnerable students.</p>
<p dir="ltr">Despite the court ruling, MPs continue to explore options to preserve the NG-CDF, which has faced repeated legal challenges. The September 2023 decision has heightened tensions, as the fund's termination threatens to disrupt community-driven projects and educational support systems across Kenya. As the June 2026 deadline approaches, the pressure is on to secure and utilize the outstanding Sh58.7 billion to complete critical initiatives and mitigate the impact of the fund's closure on constituencies and their residents.</p>
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