Treasury CS Njuguna Ndung’u has appealed for patience from legislators over delays in the disbursement of the National Government Constituency Development Fund (NG-CDF).
He attributed the delays to biting cash crunch being experienced in the country.
While appearing before the National Assembly’s Finance Committee, the CS explained the situation has been worsened by natural calamities of drought and flooding as well as debt obligations.
“In one year, Kenya has gone from one extreme, which is drought to another which is floods and in both cases, we have allocated recurrent and development budgets to save lives because we have also not been collecting enough taxes," Ndung'u said.
“We are having a liquidity problem and that is why we cannot come to the rescue as fast as we should but we are working to ensure that before Christmas we will have taken some steps towards addressing the CDF issue.”
The CS spoke a day after lawmakers threatened to paralyse House activities over delays in the disbursement of NG-CDF.
On Tuesday, Members of the National Assembly staged a walkout of the House chambers protesting the delayed disbursement of CDF.
In a rare show of unity, both Kenya Kwanza and Azimio teamed up to frustrate the afternoon business of the August House.
“We are now in the sixth month of the FY 2023-24. As we speak since this House appropriated funds to the NG-CDF board for disbursement to respective NG-CDF committees, not a single cent has hit the bank accounts of these committees, and definitely NGAAF,” Wandayi said.
The 290 constituencies receive approximately Sh130 million annually for various development programmes.
Karachuonyo MP Andrew Adipo warned that many schoolchildren from background risk being locked out of schools if the bursary is delayed further.
“We call on the Treasury to do what needs to be done so that children's bursaries are availed. We cannot risk children not going back to school, especially in the new CBC curriculum where repeating a grade is not possible,” Adipo said.
“If we dare proceed for recess without the bursaries, we as MPs will be plunging ourselves into problems with the electorate.”
The CS also came under fire on the ever-rising cost of fuel at a time the government has announced stabilising the prices through the petroleum development levy.
Members of the committee chaired by Molo MP Kimani Kuria said it beats logic why the prices have not been stabilised despite government pumping billions to keep fuel prices under control.
Kenya Kwanza upon assuming power abandoned the subsidy programme and resorted to stabilising the prices from a ring fenced fund in the Petroleum Development Levy.
“You are saying you have been stabilising prices of fuel but we have not seen the effect on this…what is going on?” posed Adipo.