The National Government Constituencies Development Fund (NG-CDF) was established under the NG-CDF Act in 2015.
It was further amended in 2023.
It’s an offshoot of the Constituency Development Fund (CDF) which was established in 2002 during the late President Mwai Kibaki’s tenure.
The NG-CDF Act 2015 effectively aligned the Fund’s operations with the new constitutional framework.
“It ensures that the law incorporates public participation, separation of powers, and clear function delineation between National and County governments,” the Act states.
It’s a purpose vehicle to undertake transformative socio-economic development of the people at the constituency level.
This is to significantly reduce abject poverty and enhance regional equity.
The National Treasury and Planning is in charge of the funds, and it’s managed by the NG-CDF Board at the National level.
At the constituency level, it’s overseen by the NG-CDF committees, and the Project Management Committees (PMC).
The fate of the development kitty now hangs in a balance: as to either scrap or entrench it in the Constitution.
In September 2024, the High Court declared NG-CDF unconstitutional.
A three-judge bench comprising Justices Kanyi Kimondo, Mugure Thande, and Roselyn Aburili agreed that the Act violated the principles of separation of powers and the MPs didn’t consult the Senate during the law enactment process.
“The judges didn’t agree to the timelines when allocations and programs funded by NG-CDF should come to a halt.”
ODM party leader Raila Odinga is among the politicians pushing for the winding up of NG-CDF.
“It’s an avenue MPs are using to encroach into county functions. If they don’t change it will be an election agenda in the coming elections,” Raila said during the burial of former Kisumu Town MP Hon.Rev Ken Nyagudi in Gem-Siaya County recently.
According to Raila, the money allocated to the fund should be channeled to the 47 counties.
To address these concerns, the National Assembly is currently conducting a four-day public participation exercise on the Constitution of Kenya (Amendment) Bill, National Assembly Bill No. 4 of 2025.
The bill seeks to entrench the National Government Constituency Development Fund (NG-CDF), the Senate Oversight Fund (SOF), and the National Government Affirmative Action Fund (NGAAF) into the Constitution of Kenya (2010).
The public hearings kicked off on Monday, 8th May, and will take place in 490 constituencies and 47 counties.
Residents of Kisumu Central turned out in large numbers to share their views on the fate of the kitty.
“We endorse the proposal to have the fund etched in the constitution. It has been a game changer in supporting numerous development projects like education, health, and security initiatives in communities,” they declared at the NG-CDF offices in Tom Mboya estate yesterday.
One of the city residents, Mr Nyaori Nyang’ wondered why some politicians have come out ‘guns blazing’ against NG-CDF.
“The national government only disburses 2.5 percent of its annual budget to the fund. Over 60 percent of your taxes remain in the national treasury,” he said.
Nyang added that instead of agitating to have the fund wiped out, more financial resources should be added to it.
“We should have a conversation on how to increase NG-CDF allocation to at least 5 percent.” the residents urged.
Addressing the residents at the event, NG-CDF National Board Chairman Hon. John Olago Aluoch, said the fund is not a function of the county governments.
“The 2.5 percent that NG-CDF administers as an agency of the national government are funds of the national government share of the annual revenue,” stated the former Kisumu West MP.
He ruled out the possibility of channeling NG-CDF allocation to counties.
“The law,” Olago pointed out,” is very clear the kitty will exclusively entertain functions of the national government.”
