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BACKGROUND

The National Government Constituencies Development Fund (NG-CDF) formerly Constituencies Development Fund (CDF), is a fund established in 2003 through an Act of Parliament, the CDF Act 2003. The Act was later reviewed by the CDF (Amendment) Act 2007, and repealed by CDF Act, 2013 which was subsequently succeeded by the current NG-CDF (Amendment) Act 2016 .

The Fund is domiciled within the ministry in charge of national economic policy and planning, currently the Ministry of Devolution and Planning. 

The main purpose of the Fund is to enhance infrastructural and socio-economic development at the grass root level in order to reduce poverty by dedicating a minimum of two and half per cent (2.5%) of all National Government’s share of annual revenue towards community projects identified at constituency level by the communities

 NG-CDF INSTITUTIONAL STRUCTURE

1.   Implementation structure 

Ø  The Fund is managed by the National Government CDF Board at the National level, the NG-CDF committees at the constituency level and the Project Management Committees (PMC) at the community level

Ø  The NG-CDF Board is a body corporate falling under the Ministry of Devolution and Planning. The Ministry ensures budgetary provisions and offers policy direction to the Fund

Ø  The National Treasury finances the NG-CDF budgets and provides financial guidelines for effective and efficient management of the Fund

Ø  The National Government CDF committees develops project proposals in consultation with wananchi through periodic ward level open forums, submits them to the NG-CDF Board for approval and facilitates the PMCs in the planning, implementation, and sustenance of the projects once completed

Ø  The project Management committees and the NG-CDF committees collaborates for efficient project management through technical support of relevant government department within the sub-county 

2.   Audit structure 

Ø  Pursuant to section 11 Of NG-CDF Act 2015 ; the Fund is audited by the Auditor General who reports to Parliament annually

Ø  Further, the sub-county internal auditors in every constituency track the utilization of the Fund and regularly reports to the National Treasury with a copy to the NG-CDF Board

Ø  In line with section 16 (b) of NG-CDF Act 2015 the Board has established its own internal audit department that reviews constituency accounts and provides assurance on efficient utilization of the Fund 

3.      Representation, Legislation and Oversight structure

 Ø  National Assembly allocates Funds to NG-CDF through the Vote Head of the Ministry of Devolution and Planning in line with the annual budgetary cycle

Ø  The National Assembly ensures appropriate legal framework is in place for effective management of the Fund

Ø  Through the National Assembly Select Committee on NG-CDF oversees the policy framework for efficient management of the Fund 

Ø  Through the Auditor General’s annual report to the Parliamentary Accounts Committee (PAC) and the Parliamentary investment committee (PIC) oversees efficient Financial management of the Fund.The overall institutional structure of the Fund as outlined above is summarized in fig 3. Below

 

 Mandate and Functions of the Board 

The Board derives its mandate from the NG-CDF (Amendment) Act 2016 . Specifically, the functions of the Board are to: 

  1. Consider project proposals submitted from various constituencies in accordance with the Act, approve for funding those projects proposals that are consistent with the Act and send funds to the respective constituency fund account with respect to the approved projects.
  2. Ensure timely and efficient disbursement of funds to every constituency;
  3. Ensure efficient management of the Fund;
  4. Co-ordinate the implementation of projects at the inter-constituency level;
  5. Receive and address complaints that may arise from the implementation of the Act;
  6. Encourage best practices in the implementation of projects;
  7. Administer the funds and assets of the Board in such manner and for such purpose as shall promote the best interest of the Board in accordance with the Act to ensure efficient management of the Fund; and
  8. Perform such other duties as the Board may deem necessary from time to time for the proper management of the Fund 

 The Funds Journey;

Since 2003/04, the Fund supported projects mainly in the areas of education, health, agriculture, roads, security, environment and sports. However, the NG-CDF (Amendment) Act 2016  introduces a major shift in the scope of projects eligible for funding. Under this Act only projects falling within the functions of the National Government as outlined in the Constitution of Kenya will be funded. This effectively means that moving forward, the Fund will concentrate primarily on education, security, sports, environment sectors and other national government residual functions