Treasury CS Mbadi Assures Timely Disbursement of NG-CDF and NGAAF Funds
CS Mbadi acknowledged the fiscal challenges faced between January and March, citing obligations exceeding Kshs. 150 billion in loan repayments and salaries.
National Treasury Cabinet Secretary, John Mbadi reassures Members of the National Assembly that the National Government Constituencies Development Fund (NG-CDF) and the National Government Affirmative Action Fund (NGAAF) will be fully disbursed by the end of the 2024/2025 Financial Year. Photo/Parliament of Kenya.
By Robert Assad
National Treasury Cabinet Secretary John Mbadi has reaffirmed the government’s commitment to fully disburse the National Government Constituencies Development Fund (NG-CDF) and the National Government Affirmative Action Fund (NGAAF) by the end of the 2024/2025 financial year.
Addressing Members of Parliament in the National Assembly, CS Mbadi disclosed that the NG-CDF was allocated Kshs. 68.2 billion for the current fiscal year, which includes Kshs. 13.56 billion in arrears.
To ensure timely disbursement, the Treasury has scheduled monthly releases of Kshs. 7 billion starting January 2025. As of now, Kshs. 27.5 billion has been disbursed, leaving a balance of Kshs. 40.7 billion.
CS Mbadi acknowledged the fiscal challenges faced between January and March, citing obligations exceeding Kshs. 150 billion in loan repayments and salaries. Despite these constraints, he assured that school capitation payments were made in full and committed to disbursing the remaining NG-CDF funds by the end of the financial year.
Members of Parliament emphasized the importance of timely fund releases. Jack Wanami Wamboka urged the Treasury to fulfill its commitments promptly to support constituents effectively.
Musa Sirma, Chair of the NG-CDF Committee, highlighted that the Kshs. 7 billion monthly disbursement translates to approximately Kshs. 23 million per constituency, crucial for supporting students returning to school.
Regarding the NGAAF, initially allocated Kshs. 3.5 billion, CS Mbadi noted a reduction to Kshs. 2.7 billion in Supplementary II estimates. He reported that Kshs. 1.6 billion has been disbursed, with plans to release the remaining funds within the month. Bensouda Osogo advocated for lump-sum disbursements at the beginning of the financial year to enhance planning and implementation of gender-focused initiatives.
CS Mbadi also addressed concerns about Kenya’s external debt, clarifying that the country faces liquidity challenges rather than insolvency. He projected minimal external debt obligations between 2034 and 2048, indicating a sustainable debt outlook.
Speaker Moses Wetang’ula commended CS Mbadi for his transparency and urged the Treasury to improve the timeliness of fund releases, particularly to avoid the delays experienced in the early months of the year. He also called for the restoration of NGAAF budget cuts in the next fiscal cycle, emphasizing the fund’s significance in grassroots development.
CS Mbadi concluded by reaffirming the Treasury’s dedication to supporting constituency development and service delivery, highlighting the collaborative efforts between Parliament and the Executive in achieving these goals.
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