ADDITIONAL FUNDS

New Bill seeks to double CDF kitty

MPs want the fund allocated at least five per cent of national revenue

In Summary
  • In the draft bill set for introduction in parliament Tuesday, the lawmakers are seeking to control not less than five percent up for 2.5 percent.
  • This now means is the bill is passed, each of the MPs will be entitled to up to Sh270million.
MPs during a session in parliament.
MPs during a session in parliament.
Image: File

 

A new Bill has been published that will see allocations to the National Government Constituency Development Fund kitty doubled.

MPs are pushing to amend the Constitution to resuscitate the  NG-CDF that was declared illegal by the Supreme Court.

In the Bill, the lawmakers are seeking to control not less than five per cent of the national government’s total revenue share.

Currently, the outlawed CDF Act 2013 provides that the government sets aside 2.5 per cent of its ordinary revenue for disbursement under the program.

“There is established NG-CDF which shall be a fund consisting of monies of an amount of not less than five per cent of all the government’s share of revenue as divided by the annual Division of Revenue Act enacted pursuant to Article 218,” reads the Bill in part.

The bill is co-sponsored by MPs Gichimu Githinji (Gichugu) and Stephen Mule (Matungulu).

In the 2021-22 financial year, MPs were allocated a total of Sh41.7 billion, translating to Sh137 million yearly among the 290 constituencies.

This now means if the bill is passed, each of the MPs will be entitled to up to Sh270 million.

The journey by the two legislators to amend the Constitution started in September when they wrote separate letters to the Speaker informing him of their decisions to introduce the bill.

Also captured in their new bill are the Senate Oversight Fund (SOF), National Government Affirmative Action Fund (NGAAF), and the Economic Stimulus and Empowerment Fund (ESEF).

In the provisions, the senate oversight fund will consist of “monies of an amount of not less than 0.001 per cent of all the national government’s share of revenue as divided by the annual Division of Revenue Act enacted pursuant to Article 218.”

NGAAF will be not less than 1.4 per cent per annually of the government’s share of revenue as divided by the annual Division of Revenue.

Parliament is to enact legislation to make provisions for the operationalisation of the stimulus fund towards empowerment of men, women, youth and persons living with disabilities.

Lawyers have already poured cold water on the new push by the MPs saying it was bound to fail.

“It is going to flop miserably. It is an exercise in futility and a wild goose chase to try to bring back CDF,” said Suyinka Lempaa.

He was among the team that represented petitioners who successfully challenged CDF.

The MPs have the backing of President William Ruto who underscored its importance terming it “monumental”.

“I believe there is a way NG-CDF can be aligned to the tenets of the Constitution. Having served in Parliament for 15 years, before and after the establishment of NG-CDF, I know the difference it makes is monumental,” Ruto said during his address.

This means, chances of being accented into law should it pass without any hitches in Parliament are high.

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