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OKANGO: How MPs reconfigured public funds and strained the constitution

Devolution was designed to empower county governments to drive localised development based on community priorities

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by Fredrick OKANGO

Opinion08 May 2025 - 12:44
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In Summary


  • Article 6(2) of the Constitution of Kenya provides for two levels of government—national and county.
  • However, the operationalisation of NG-CDF has inadvertently introduced a quasi-third tier, characterised by distinct budgeting, procurement and implementation systems. This has created a governance arrangement that diverges from the constitutional architecture.

The constitutional challenge: An emerging parallel structure

Article 6(2) of the Constitution of Kenya provides for two levels of government—national and county. However, the operationalisation of NG-CDF has inadvertently introduced a quasi-third tier, characterised by distinct budgeting, procurement and implementation systems. This has created a governance arrangement that diverges from the constitutional architecture. Notably, in 2024, the High Court ruled the NG-CDF unconstitutional for effectively establishing a parallel administrative structure. Despite this, the fund continues to be administered by MPs, raising concerns about the continued disregard for constitutional supremacy and judicial pronouncements.

Undermining devolution: The shifting role of MPs in local development

Devolution was designed to empower county governments to drive localised development based on community priorities. However, with MPs exercising significant control over NG-CDF resources, the delineation between legislative and executive functions has been blurred. These funds, directed to constituencies outside the purview of county planning frameworks, risk bypassing established structures and fostering disjointed development. The execution of projects through MPs, often without coordination with county governments, diminishes the effectiveness of devolution and raises questions about the fidelity to constitutional intent.

The patronage system: Politicising service delivery

The deployment of NG-CDF has increasingly taken on a political character. Rather than reinforcing institutional collaboration, the fund has become an instrument of political influence, with MPs utilising development projects to consolidate electoral support. This has unintentionally marginalised county governments, whose constitutional mandate is to provide local services. The public perception that MPs, rather than county executives, are the primary agents of development further erodes the legitimacy of devolved governance. Moreover, the allocation of funds based on political expediency risks distorting long-term planning and undermines equitable development.

Financial inefficiencies: Opportunity costs for counties

In the fiscal year 2023, NG-CDF was allocated Sh44 billion—resources that could have been channelled through county governments to support devolved functions. Audit findings highlight systemic inefficiencies: the 2023 auditor general’s report revealed that 62 per cent of NG-CDF projects lacked proper documentation, compared to 22 per cent of those implemented by counties. Additionally, approximately 30 per cent of NG-CDF allocations were consumed by administrative costs, significantly higher than the 12 per cent reported in county operations. These inefficiencies raise important questions about value-for-money, accountability and the optimal deployment of public resources.

The consequences of parallel project implementation are evident across constituencies. Redundancies and overlaps between NG-CDF and county initiatives lead to inefficient use of public funds and create confusion among citizens regarding responsibility for service delivery. This fragmentation weakens both levels of government, limiting their capacity to provide coherent and integrated development solutions. Rather than complementing devolution, the current model risks entrenching a competitive and uncoordinated system of governance.

Reforming NG-CDF: Towards constitutional alignment and fiscal prudence

To realign NG-CDF with the spirit and letter of the constitution, a series of reforms is imperative. First, the High Court’s 2024 decision must be upheld, with the NG-CDF either abolished or restructured to limit its scope to functions reserved for the national government. Second, financial allocations targeting devolved functions should be administered through county governments in accordance with constitutional dictates. Third, county assemblies should be further empowered to oversee public expenditure, enhancing local accountability. Finally, all public funds—regardless of the disbursing authority—should be subject to uniform and rigorous oversight to safeguard transparency, efficiency and equitable development.

Protecting the integrity of devolution

The NG-CDF, while initially a noble effort to catalyse grassroots development, has in practice evolved in ways that conflict with the constitution’s devolution framework. By creating parallel structures and bypassing county governments, it compromises local governance and fragments service delivery. Upholding the principles of the constitution requires reaffirming the central role of counties in development and ensuring public funds reinforce, rather than circumvent, devolved systems. Only through such alignment can Kenya realise the full promise of sustainable, accountable and inclusive governance.

Fredrick Okango is a political strategist and commentator, an expert in leadership and governance, and a Strategic communications adviser.


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