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Saturday, July 31, 2021

MPS pass revenue bill after Treasury resolves CDF row

By The Frontier Post Reporter

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National Treasury was yesterday forced to convince MPs not to shoot down the Division of Revenue Bill by promising to release the National Government Constituency Development Fund (NG-CDF) cash which is in arrears.

The Bill, which allocates revenue to counties was deferred last week after MPs shot it down protesting failure by the Treasury to allocate CDF money.

Treasury released Sh6 million to each constituency on Monday, but the MPs still demanded that the full amount of Sh65 million is released for them to pass the Bill.

National Assembly Leader of Majority Amos Kimunya had to make frantic efforts shuttling between Parliament and the Treasury to have the matter resolved before the afternoon session kicked off.

A source said Treasury Cabinet Secretary Ukur Yatani managed to convince MPs that the remaining cash will be released in tranches starting next month.

The Division of Revenue Bill passed without hitches allowing Treasury to allocate money to counties.

The CDF is popular with MPs as they use it to endear themselves by initiating development projects at the constituencies.

National Assembly’ Select Committee on NG-CDF told Parliament in a report on the disbursement of the 2019/20 CDF allocation that a total of Sh28 billion had been released to constituencies as at August 4 last year, leaving a balance of Sh13.7 billion.

Treasury allocated CDF Sh41.7 billion, and each of the 290 constituencies was to receive Sh137 million for development in the year to June 2020.

The Treasury has since maintained the same budget in the 2020/21 financial year where each constituency will get Sh137, 088,879 inclusive of emergency reserve of Sh7.2 million. The CDF board will retain Sh1.95 billion or 5 per cent of the total CDF budgetary allocation for administration purposes.

Kanduyi MP Wafula Wamunyinyi, who chairs NG CDF committee, told Parliament that 13 constituencies had received full allocation for the year under review while 271 electoral areas got between 50 and 99 per cent of their annual allocation. 

Six constituencies had received between 39 and 49 per cent of their total annual allocation.

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