Government releases Sh7 billion for CDF, amid MPs' dissatisfaction

National Treasury Cabinet Secretary John Mbadi has attributed the delay in disbursing the National Government Constituency Development Fund (NGCDF) and the Affirmative Action Fund to heavy financial obligations in the year's first quarter.

In a statement to the National Assembly, Mbadi said the Treasury had released Sh7 billion for the CDF and Sh1.1 billion for the Affirmative Action Fund as of yesterday. However, MPs expressed skepticism, arguing that at least Sh21 billion should have been disbursed.

Mbadi urged MPs to be patient, promising to release another Sh7 billion by April 29, but cautioned against making commitments without available funds.

“I would have liked to disburse Sh21 billion, but there’s significant pressure. Unless we receive external financing, I can't promise money we don't have. Once funds are available, there's no reason I can't release even more,” he said.

The CS admitted to defaulting twice this year but maintained that at least Sh21 billion has already been disbursed in 2025.

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“At the policy level, I want to reiterate that we have a strategy on how to release Exchequer, especially on devolved resources. Being a former member of this House for 17 years, and appreciating the role that CDF plays in our economic development, supporting various social aspects of the society, I voluntarily came to your office to discuss the challenges for the release of funds,” he told the National Assembly.

According to Mbadi, there was a carryover of CDF funds from the last financial year, money that was appropriated to the NGCDF but not disbursed.

In the 2023/24 financial year, only Sh44.4 billion of the Sh57.9 billion allocated was disbursed, leaving a shortfall of Sh13.5 billion. This amount was added to the 2024/25 budget of 54.9 billion, bringing the total to Sh68.2 billion.

Mbadi said he met with National Assembly Speaker Moses Wetang’ula in December to explain the disbursement challenges. By then, Sh13.5 billion had been released.

In September last year, there were three disbursements: Sh5.5 billion, Sh300 million, and Sh2 billion.

In November, some Sh5.7 billion cleared the entire carryover.

"I committed that starting December, we would release Sh7 billion monthly. In March, the National Treasury defaulted, but in April, in fact, today, we released another Sh7 billion.

As for the National Government Affirmative Action Fund, the initial budget was Sh3.2 billion, which was reduced to Sh2.7 billion in the supplementary budget, and Sh1.6 billion has been released so far."

Mbadi said the months of January to March are usually very difficult for the National Treasury and for the economy.

According to Mbadi, these are the months the Government must first pay capitation to schools in the first term and out of the total allocation for primary schools, Junior Secondary Schools, and high schools of Sh96 billion, some 48 billion must be released in the first term, which was done.

For the second term, another Sh14 billion will be released, and Sh24 billion for the third term.

Also in January, Mbadi said this is the time when the Government pays most of the loans, especially bilateral loans from China, to pay for the Standard Gauge Railway (SGR).

"This is the month we paid, on January 16, some Sh10.6 billion for foreign payments, the same January 17, we paid another Sh59 billion. I want to jump over other small amounts and indicate the same. January 24, we paid Sh3 billion and another Sh1.1 billion,” said Mbadi.

The CS said that the payments bring the amount for loans in January alone to Sh75 billion, and then add a salary of Sh80 billion.

"Our salary wage bill has moved from Sh75 billion, the way it was in December, to Sh80 billion per month in January because we onboarded JSS teachers at enhanced salaries. Teachers agitated for a salary increment, which they deserved and got. We also had to adjust the salary of our disciplined forces. We had to adjust the salaries of lecturers who were in the streets by Sh4.3 billion. Now, that has pushed our salary figures to 80 billion."

He added, "Now Sh80 billion added to Sh75 billion, that is already 150 billion. I will tell you, at that point, you have not released any money to counties, and you have not released any money to CDF, and you have not released any money for any operations."

Wetang’ula, however, said that the little received is better than none, but told the CS they should plan accordingly to avoid the traffic between January to March.

Bumula MP, Wanami Wamboka said: “We have been patient with the Minister on the thing he has been saying because he has been a ranking member of this House, we probably could not have been that tolerant if you didn’t have those decorations. You have been using the Speaker as a shield. What we were expecting from you today was Sh21 billion.

With CGCDF Chairman Musa Sirma adding: “The amount of Sh7 billion translates into Sh23 million per constituency and the balance, which we had been given before, Sh14 billion, shows every constituency has an average of Sh46 million.”

Eldas Mp, Adan Keynan agreed that no Government has enough money, but the difference is how they prioritize, plan, and execute the resources they collect.

“I have been reluctant to participate in launching my bursary plan simply because we must be practical, truthful, and tell our constituents what is there. We must live with what we have, but you understand the regions we come from are so high. Can the minister revise the programme for release?”

Mbadi also dismissed remarks pointing to challenges in debt unsustainability, saying it could cause unnecessary panic.

According to Mbadi, Kenya will have no external loan repayments between 2034 and 2048. However, between now and 2032, the National Assembly, Treasury, and Executive must work together to stabilise the economy.

“That’s why some of us were brought into the Executive as experts, to help steer the ship. During that period, we have no external loans to repay, not bilateral, commercial, or multilateral. So don’t be discouraged. The process will continue, and I’m fully committed. There’s no way we will default,” said Mbadi.

He also affirmed Kenya’s economic strength, noting it is the strongest in the region.

“Let no one scare people into thinking Kenya will default. We may be struggling, but have we failed to pay salaries? No. Have we paid school capitation? Yes, in full. Are we meeting our security and other key expenditures? Yes. Will we release the full CDF for school infrastructure and bursaries? Yes,” he added.