NAIROBI, Kenya— Members of Parliament have launched a fierce push for the immediate release of at least Sh21 billion of the pending National Government Constituency Development Fund (NG-CDF), accusing the National Treasury of repeatedly breaching disbursement commitments and neglecting pressing needs at the grassroots level.
This follows Treasury’s admission that only Sh7 billion of the outstanding Sh 40 billion has been disbursed so far with a further Sh7 billion expected before schools reopen at the end of April.
Treasury Cabinet Secretary John Mbadi defended the delay, citing significant liquidity constraints during the first half of the year due to high statutory demands, including salary obligations and maturing external debt.
“January, March, and April are some of the most difficult months for us at the National Treasury,” Mbadi told MPs.
“These are the months we must prioritize capitation to schools, loan repayments, and salary commitments. These obligations stretch our fiscal space.”
He pointed to January’s massive loan repayments, including Sh10.6 billion to China for the Standard Gauge Railway, along with several other external and domestic payments totaling Sh75 billion.
Mbadi explained, was a ballooning wage bill that rose to Sh80 billion per month fueled by the onboarding of Junior Secondary School teachers and salary adjustments for lecturers and security forces.
“When you combine Sh75 billion for loans with Sh80 billion for salaries, we are already at Sh150 billion and that’s before we release a single shilling to counties or CDF,” he said.
But lawmakers were unimpressed, questioning the Treasury’s priorities and accusing the CS of recycling old promises without results.
Bumula MP Wanami Wamboka who raised the matter faulted Mbadi for offering the same explanations made during earlier meetings in Naivasha and failing to provide a firm disbursement schedule.
“A lot of what the minister has said here today are things we heard in Naivasha. Hon. Mbadi, we respect you. But when you went to the Treasury as an expert, we expected that you’d give commitments that you were certain about,” said Wamboka.
“You’ve put our Speaker in an awkward position. What we expect from you today is Sh21 billion that’s the bare minimum.”
Borabu MP Patrick Osero Gisairo warned that repeated delays are eroding public confidence in Parliament demanding a disbursement schedule.
“CS, what we want is Sh21 billion by the end of this month if not today and the balance by the end of next month,” Gisairo demanded.
“Otherwise, this will be another empty promise. It’s us MPs being taken for a ride out there. Let the CS give us a clear and credible roadmap.”
Baringo North MP Joseph Makilap called for structural reforms to ensure future disbursements are not left to Treasury’s discretion.
“Why don’t we just release the entire NG-CDF allocation in the first quarter of the financial year?” Makilap proposed.
“This will ensure school-going children don’t suffer, and MPs are not wrongly blamed for delays beyond our control.”
Mbadi insisted the government remains committed to disbursing all funds owed under NG-CDF, but stressed that repayment schedules for legacy debt particularly those maturing between now and 2032 are constraining fiscal flexibility.
“The issue we are facing is not about sustainability of our debt, but rather liquidity,” he said.
“Most of our loans mature between now and 2032. After that, from 2034 to 2048, we hardly have any external loans to service.”
Mbadi reaffirmed that Kenya remains economically stable despite current pressures.
“This country is not on the verge of default. It is the strongest economy in the region. We have not failed to pay salaries, capitation, or our security expenditures. And yes, we are going to release all NG-CDF funds,” he said.
