Protests over delayed release of CDF money
MPs have protested against the National Treasury’s failure to release Sh44.3 billion for the National Government-Constituency Development Fund (NG-CDF).
They have now threatened to boycott work and reject the Supplementary Budget unless the dispute is resolved and the money released. The MPs say that thousands of learners were stuck at home awaiting bursaries, whose release has been frustrated by the delayed funds.
Their protests came despite a pledge by the Treasury that it will disburse Sh2 billion for the fund every week.
Leader of Majority Kimani Ichung’wah, who read a statement on behalf of the Treasury, faced the lawmakers’ wrath when they told him off, saying his communication was not satisfactory because it only promised to have the Sh2 billion released once the Attorney General, Justin Muturi, gives his legal opinion on the Supreme Court ruling that declared the 2013 CDF Act unconstitutional.
Angry MPs demanded that Finance Cabinet Secretary Njuguna Ndung’u, Muturi and Chief Justice Martha Koome be summoned by the relevant House committee to shed light on the matter.
In August, the Supreme Court ruled that the CDF Act, which was enacted in 2013 and changed in 2015, was unconstitutional. A bench of five judges led by Justice Koome declared that the CDF Act violates the principle of separation of powers, and therefore, was unconstitutional.
The ruling effectively hammered the last nail in the CDF coffin, blocking MPs from using the funds to curry favour with their constituents. Since the new MPs were sworn in, they have been debating how they can change the Constitution to entrench the fund in it by going around the Supreme Court ruling.
Yesterday, in a meeting with Kenya Kwanza MPs, President William Ruto cautioned them against changing the Constitution for selfish gain. Although he was referring to a proposal by Fafi MP to remove term limits, his pronouncement could send a signal that he would be unwilling to append his signature to a law altering the Constitution.
Later in the day, Ichung’wah told the lawmakers that apart from the Supreme Court ruling, other challenges affecting the government had also contributed to the failure by the Treasury to release funds.
He blamed delays in transitioning to the new government, the Russia-Ukraine conflict — which has exerted pressure on fuel and commodity prices thus forcing the government to cushion Kenyans from the crisis — as well as the worsening market conditions — which he said had made it impossible for the Treasury to raise the required resources from international market to fund the Budget. In turn, this had delayed the release of funds.
Ravaging drought
Further, he said that despite a good revenue performance, the delayed release of funds from the International Monetary Fund (IMF) had resulted in shortfalls in financing. The net effect, he said, was the lowering of budget financing by Sh241.2 billion, thus forcing the government to carry over huge deficits and pending bills amounting to Sh90 billion.
He also claimed that the fuel subsidy, drought mitigation intervention and salaries budget shortfall as well as new priority programmes for the incoming government — such as the Hustler Fund and fertiliser subsidy — had also made it difficult for Treasury to release any funds for use by MPs.
“As you are aware, significant resources have been directed towards mitigation of the ongoing drought ravaging the country. The National Treasury has, however, taken steps in getting financing both locally and internationally and has been notably experienced and will be able to fund most of the outstanding issues,” said Ichung’wah.
The fund currently operates under the National Government Constituency Development Fund (NG-CDF) Act 2015. Although this law has not be declared illegal, a petition of a similar nature to the 2013 Act has been filed in court.
Despite Ichung’wah’s assurances, the MPs accused the Executive and the Judiciary of colluding to intimidate Parliament. They asked the Committee on NC-CDF to summon both AG Muturi and CS Ndung’u.
Led by Leader of Minority Opiyo Wandayi, Minority Whip Junet Mohamed and MPs John Mbadi (nominated), Lilian Gogo (Rangwe), John Kiarie (Dagoretti South) Weytan Mohammed (Mandera East), Johanna Ng’eno (Emurua Dikirr), John Gitonga (Manyatta), Robert Pukose (Endebess), the lawmakers made it clear that they needed all the money released in one tranche.
Wandayi said the Supreme Court ruling did not in any way affect the NG-CDF Act and wondered why the Treasury was reluctant to release the money. “There is no evidence that the National Treasury has been served with court orders barring them from disbursing CDF,” he said. “I am not saying we shall go on strike but we can stop business until NG-CDF is disbursed.”
The President needs Parliament to approve PS nominees and pass the new Budget estimates as he races to consolidate his new administration. Should MPs boycott work, they will leave these plans in limbo.
“This is a conspiracy being perpetuated by both Judiciary and the Executive to make Parliament look useless,” said Junet Mohammed. “CDF has been there for the last 20 years and this is not a fund that was started by this Parliament. Parliament must put its feet down and refuse to do its job until this matter is resolved completely”.
Students missing out
He said the House will not pass the Supplementary Budget without NG-CDF.
“I am here requesting you that we must down our tools until this issue is addressed. Whatever is happening amounts to ridiculing Parliament,” he told members.
Mbadi said the Executive was not interested in releasing CDF and that was why no cash had hit their accounts.
“I urge the Majority Leader to remind the Executive that they have all the laws with them. It is well known that the 2015 Act was not ruled on, they also know that the Appropriations Act is clear on the disbursement of funds. Therefore, the National Treasury has no reason to delay further the release of the funds. Let them release all of the money,” said the Opposition MP.
Kiarie said it was high time that as MPs they explore other ways of ensuring that they get the NG-CDF funds — including having it as part of the operations funded by the Parliamentary Service Commission (PSC). “This parliament cannot continue to be at the mercy of the Executive,” said the Kenya Kwanza MP. “We must bring an amendment here to ensure that this money comes through PSC.”
His Manyatta counterpart warned that some Form Four students sitting this year’s Kenya Certificate of Secondary Education (KCSE) risk missing out from the national examination because they are yet to pay outstanding fees balances that are normally catered for by constituency bursaries.
