Some MPs have lost control of millions as others gain
by The Star
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MPs raise hands to ask questions at budget process and public finance group plenary session during MPs induction at Safari Park, Nairobi on September 21, 2022/ANDREW KASUKU
Incoming MPs are shocked that they will not be given equal shares of the National Government Constituency Development Fund.
The formula for sharing the development funds was changed with the enactment of a new law basing the distribution on the number of wards.
According to the NG-CDF (Amendment) Act, 2022, 75 per cent of the allocated amount will be shared equally among the 290 constituencies.
The rest of the billions will be shared based on the number of wards in each constituency, a formula which will see some gain more control of CDF cash as others get less.
Former President Uhuru Kenyatta enacted the law which staged the new formula on July 7, expunging the formula which factored the poverty index of the counties where the constituencies are located.
The allocation to be shared out will be arrived at after the deduction of five per cent for administration of the fund.
Constituencies are required to set aside five per cent of what they are to share equally for emergencies.
Considering the current total allocation of Sh41 billion, Sh37.72 billion is what will be available for sharing out.
This includes Sh28.3 billion to be shared equally, Sh9.4 billion to be shared based on the number of wards, and Sh2.08 billion for emergencies – about Sh7.2 million per constituency.
At least 190 constituencies are above average and hence will get more money under the new formula.
Some 100 others are below average, meaning they will lose money in the allocation for the current year, estimated at more than Sh750 million.
The new figures were canvassed in a report by the Constituency Development Committee of the National Assembly after a review of the existing law.
Several MPs, including veterans, on Wednesday lamented they were caught by surprise with others saying they were unaware of the law they passed.
Sources indicated that the negatively-affected members protested during a closed-door meeting held on Tuesday evening with the NG-CDF board.
Sirisia MP John Waluke told journalists he was surprised to learn that his constituency will lose Sh7 million in the new allocation formula.
“I will be forced to reduce the number of development projects that I had intended to initiate. This is unfair and I am not in agreement with it but there is nothing we can do now,” he said.
For many lawmakers, though, including some of those whose constituencies are losing a share of what they used to get, the expunged formula was unfair.
Kamukunji MP Yusuf Hassan welcomed the new formula, saying the NG-CDF formula should be based on population.
“It is unfair to share revenue equally yet there are some constituencies with huge populations compared to others which have less than 100,000 people,” he said.
“I believe it’s a small sacrifice to lose about Sh7 million. We cannot all get equal allocations as some of our constituencies are huge. We need to have equitable sharing of revenue,” he added.
The 190 constituencies that are gaining will get between Sh158,155 and Sh19.7 million more, whereas those losing would have their share slashed by between Sh6.3 million and Sh12.8 million.
The report shows that the highest gainers will be allocated up to Sh156.7 million while those that will get the lowest will be allocated at least Sh124.2 million.
Presently, the 290 constituencies receive Sh137 million each annually regardless of their size and population, among other development indicators.
In the new formula, five constituencies namely Kinangop, Ruiru, Mwea, Naivasha and Kanduyi will receive an additional Sh19.6 million each, bringing their share to Sh156.8 million.
Among the constituencies which stand to gain up to Sh12 million to get Sh150.3 million are Kisauni, Kinango, Kilifi North, Lamu West, Wajir South, Moyale, Isiolo North, Machakos Town and Makueni.
Others in the category are Turkana West, Cherangany, Soy, Mosop, Tiaty, Bureti, Malava, Nyatike, Hamisi, Bumula, Karachuonyo, Ndhiwa and Kuria West.
The losers – to the tune of Sh12.8 million - include Jomvu, Lamu East, Saku, Isiolo South, Mbeere North, Kilome, Tetu, Kangema, Mathioya, Turkana East, Endebess and Ainabkoi.
Also losing up to Sh12.8 million are Mogotio, Mumias East, Emuhaya, Sirisia, Webuye East, Ugunja and Bomachoge Chache.
Dozens of constituencies, according to the breakdown by the NG-CDF committee, stand to lose up to Sh6.3 million. They include Lunga Lunga, Msambweni, Kaloleni, Rabai, Ganze, Galole, Wundanyi, Ijara, Wajir East, Tarbaj, Wajir West, Eldas, North Horr, and Central Imenti.
Also losing a share of allocation are Mwingi West, Kitui West, Kitui Rural, Mavoko, Kathiani, Kaiti, Kibwezi East, Ol Jororok, Kirinyaga Central, Mukurweini, Othaya, Kipipiri, Gatundu North, Gatundu South, Kiambu Town, Loima, Sigor, Keiyo North, Narok East, among others.
Those gaining about Sh6.7 million include Mathare, Starehe, Kitutu Masaba, South Mugirango, Kisumu Central, Bondo, Gem, Alego Usonga, Butula, Teso South, Lurambi, Ainamoi, Narok South, Njoro, Eldama Ravine, Laikipia West, Kiharu, Maragua, Kandara, Runyenjes, Manyatta, Maara, Lagdera, Daadab, Garsen, and Magarini.
The allocation to each ward translates to about Sh6.5 million, amid assurances by the NG-CDF board that the fund would remain in place.
Board CEO Yusuf Mbuno is reported to have assured MPs at the Tuesday evening meeting that the Supreme Court ruling did not affect the current CDF law: NG-CDF Act, 2015.
The new law further allows NG-CDF teams to create an operations account into which they will receive exchequer releases.
“For the purpose of disbursement of funds, there shall be opened and maintained constituency operations account for every constituency at any commercial bank, which account shall be approved by the National Treasury and into which all funds shall be kept and such an account shall be known by the name of the constituency for which it is opened,” the law reads.
Unlike in the past when any unspent balances were returned to the NG-CDF Board, the balances will be retained by constituencies with the committees empowered to redirect them to any priorities.
“All receipts, savings and accruals to the Fund and the balance of the Fund at the end of each financial year shall be retained in the Fund, and applied in accordance with this Act,” the law states.
Constituencies are allowed to open a deposit account for holding any monies that they receive from third parties.
“For the purposes of this Act, each constituency shall maintain one deposit account and one constituency operations account,” says the new law.
At least three signatories are required for every cheque or payment instrument or withdrawal of funds from the constituency operations account and the constituency deposit account.
Constituency managers are required to submit to the board lists of ongoing and proposed constituency projects within three months of the release of budget ceilings for the constituencies.
Former President Uhuru Kenyatta signed the bill which staged the new formula on July 7, expunging the formula which factored the poverty index of the counties where the constituencies are located.
Edited by Henry Makori
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