NAIROBI, Kenya — The Treasury has released Sh7 billion to the National Government Constituencies Development Fund (NG-CDF) after Members of Parliament (MPs) raised concerns over delays in fund disbursements.
The latest release follows repeated complaints from MPs, who cited the negative impact on student projects and community development initiatives.
Appearing before the MPs on Wednesday, Treasury Cabinet Secretary John Mbadi explained that the delays were due to the carryover of unspent funds from the previous financial year, as well as the Treasury’s need to meet other pressing financial obligations, such as loan repayments and school capitation.
“The carryover from the previous financial year saw Sh13.5 billion remain undisbursed out of the total Sh57.9 billion. This was added to the 2024/25 allocation,” Mbadi said, highlighting that while Sh44.4 billion of the total allocation for the year was disbursed, the remaining funds were delayed due to the heavy financial commitments faced by the government.
Mbadi admitted that although Sh7 billion was released in December and another Sh7 billion in February, no funds were disbursed in January or March.
However, he assured MPs that an additional Sh7 billion had been released on Wednesday, marking a step towards fulfilling the disbursement schedule.
He further explained that the months of January, February, and March are the most challenging for the Treasury due to substantial financial commitments, including Sh75 billion paid in loans and an Sh80 billion salary wage bill in January alone.
Other costs such as the Standard Gauge Railway (SGR) loan repayments and salary adjustments for various public sector workers further strained the budget.
In addition, Mbadi noted that the budget for the National Government Affirmative Action Fund (NGAAF) had been reduced from Sh3.2 billion to Sh2.7 billion following a supplementary budget, and the balance of Sh1.1 billion had been cleared.
MPs voiced frustration over the delays, with Bumula MP Wanami Wamboka calling for the Treasury to honor its promises.
“What we are expecting from you today is Sh21 billion—the bare minimum,” he said.
Kitutu Masaba MP Clive Gisairo echoed this sentiment, demanding the release of Sh21 billion by the end of April, with the remainder cleared by May.
Homa Bay Woman Rep Joyce Osogo also raised concerns over NGAAF’s release plan, advocating for a monthly release of Sh7 billion, similar to the NG-CDF process.
In response, Mbadi expressed caution, explaining that he would refrain from committing to further disbursements without confirmed resources but assured MPs that all Sh68 billion allocated for NG-CDF would be cleared by the end of the financial year.
National Assembly Speaker Moses Wetang’ula acknowledged the challenges but urged the Treasury to avoid future delays, emphasizing that the funds belong to the people of Kenya.
“The little we have got is better than nothing, but we encourage the Minister to do much more,” he said.
