About 100 constituencies will lose CDF millions in a new sharing formular.
In Kilifi county, Ganze, Rabai and Kaloleni will lose out in the new formula
The formula which was brought about by the NG-CDF (Amendment) Act, 2022 will base the distribution on the number of wards.
According to the new law, 75 per cent of the allocated amount would be shared equally among the 290 constituencies and the rest as per the number of wards in each constituency.
This would be after the deduction of five per cent for the administration of the fund. Constituencies would also be required to set aside five per cent of their equal share for emergencies.
Considering the current allocation of Sh41 billion, Sh37.72 billion is what would be available for sharing out and include Sh28.3 billion to be shared equally, Sh9.4 billion to be shared based on the number of wards, and Sh2.08 billion for emergencies – about Sh7.2 million per constituency.
A report by the Constituency Development Committee of the National Assembly reveals that 190 constituencies would be above average and hence would get more money with the new formula.
The breakdown reveals that at least 100 others would be below average, meaning they would lose money in the allocation for the current year, estimated at more than Sh750 million.
The 190 constituencies that are gaining will get between Sh158,155 and Sh19.7 million more whereas those losing are in the range of Sh6.3 million and Sh12.8 million.
The report showed that the highest gainers would be allocated up to Sh156.7 million while those that would get the lowest at Sh124.2 million.
Presently, the 290 constituencies receive Sh137 million each annually regardless of their size, and population, among other development indicators.
In the new formula, five constituencies namely Kinangop, Ruiru, Mwea, Naivasha, and Kanduyi constituencies would receive an additional Sh19.6 million each, bringing their share to Sh156.8 million.
Among the constituencies which stand to gain up to Sh12 million to get Sh150.3 million are Kisauni, Kinango, Kilifi North, Lamu West, Wajir South, Moyale, Isiolo North, Machakos Town, and Makueni.
Others in the category are Turkana West, Cherangany, Soy, Mosop, Tiaty, Bureti, Malava, Nyatike, Hamisi, Bumula, Karachuonyo, Ndhiwa, and Kuria West.
The losers – to the tune of Sh12.8 million, include Jomvu, Lamu East, Saku, Isiolo South, Mbeere North, Kilome, Tetu, Kangema, Mathioya, Turkana East, Endebess, and Ainabkoi.
Also losing up to Sh12.8 million are Mogotio, Mumias East, Emuhaya, Sirisia, Webuye East, Ugunja, and Bomachoge Chache.
Dozens of constituencies, according to the breakdown by the NG-CDF Committee, stand to lose up to Sh6.3 million. They include; Lunga Lunga, Msambweni, Kaloleni, Rabai, Ganze, Galole, Wundanyi, Ijara, Wajir East, Tarbaj, Wajir West, Eldas, North Horr, and Central Imenti.
Also losing share of allocation are Mwingi West, Kitui West, Kitui Rural, Mavoko, Kathiani, Kaiti, Kibwezi East, Ol Jororok, Kirinyaga Central, Mukurweini, Othaya, Kipipiri, Gatundu North, Gatundu South, Kiambu Town, Loima, Sigor, Keiyo North, Narok East, among others.
Those gaining about Sh6.7 million include Mathare, Starehe, Kitutu Masaba, South Mugirango, Kisumu Central, Bondo, Gem, Alego Usonga, Butula, Teso South, Lurambi, Ainamoi, Narok South, Njoro, Eldama Ravine, Laikipia West, Kiharu, Maragua, Kandara, Runyenjes, Manyatta, Maara, Lagdera, Daadab, Garsen, and Magarini.
The allocation to each ward translates to Sh6.5 million.
The new law further allows NG-CDF teams to create an operations account into which they would receive exchequer releases.
“For the purpose of disbursement of funds, there shall be opened and maintained constituency operations account for every constituency at any commercial bank, which account shall be approved by the National Treasury and into which all funds shall be kept and such an account shall be known by the name of the constituency for which it is opened,” the law reads.
Unlike in the past when any unspent balances were returned to the NG-CDF Board, the balances would be retained by constituencies with the committees empowered to redirect them to any priorities.
“All receipts, savings and accruals to the Fund and the balance of the Fund at the end of each financial year shall be retained in the Fund, and applied in accordance with this Act,” the law states.
Constituencies would also be allowed to open a deposit account for holding any monies that they receive from third parties.
“For the purposes of this Act, each constituency shall maintain one deposit account and one constituency operations account,” says the new law.
At least three signatories would be required for every cheque or payment instrument or withdrawal of funds from the constituency operations account and the constituency deposit account.
Constituency managers would also be required to submit to the board lists of ongoing and proposed constituency projects within three months of the release of budget ceilings for the constituencies.
President Uhuru Kenyatta signed the bill which staged the new formula on July 7.
The current share is based on a formula which factor’s the poverty index of the counties the constituencies straddle.