Constituencies to Share Sh58.7bn NG-CDF Allocation as Funding Rises by 5.1pc

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NAIROBI,Kenya July 21 – The country’s 290 constituencies will share Sh58.7 billion under the National Government Constituencies Development Fund (NG-CDF) in the 2026/27 financial year after Parliament approved an increase in the fund’s allocation despite a constrained fiscal environment.The NG-CDF allocation has increased by 5.1 per cent from Sh58.797 billion in the current financial year to Sh61.798 billion, with every constituency set to receive between Sh8.8 million and Sh11.3 million more than in the previous financial year.Tabling the schedule of constituency budget ceilings before the National Assembly on Monday, National Government Constituencies Development Fund Committee Chairperson Musa Sirma said the increase would support equitable development across the country.Mr Sirma said the committee had met the Acting Chief Executive Officer of the NG-CDF Board and considered the approved budget estimates for the 2026/27 financial year before preparing the allocation schedule in accordance with the NG-CDF Act.“The increase, though modest given the tight fiscal environment, is a step in the right direction towards catalysing equitable and transformative development interventions across the Republic,” he told the House.Under the law, the NG-CDF receives not less than 2.5 per cent of the national government’s share of revenue as approved through the annual Division of Revenue Act.Out of the Sh61.798 billion allocation, Sh3.09 billion—equivalent to five per cent of the fund—has been set aside to cater for the administration and operational expenses of the NG-CDF Board.This leaves Sh58.708 billion available for direct allocation to the 290 constituencies.The allocations have been computed using the formula provided under the NG-CDF Act, where 75 per cent of the funds are shared equally among all constituencies while the remaining 25 per cent is distributed based on the number of wards in each constituency.Under the equal share component, every constituency will receive Sh151 million, accounting for a total allocation of Sh44.03 billion.The remaining Sh14.68 billion has been distributed according to the number of wards in each constituency, resulting in varying final allocations across the country.Mr Sirma said the committee would continue pushing for increased allocations in future budgets to address growing development demands at the constituency level.“We will push for a higher increment given the development needs of the constituencies and urge the House to support this endeavour,” he said.The committee also confirmed that another Sh3.09 billion, representing five per cent of the total fund, has been reserved as an Emergency Fund as required by law.The money will remain ring-fenced and can only be utilised when emergencies arise in accordance with the provisions of the NG-CDF Act.The committee further disclosed that 76 constituencies generated Sh24.66 million in Appropriations-in-Aid (A-in-A), mainly from rental income and other revenues earned from buildings and facilities developed through the fund.The revenue has been incorporated into the allocations of the affected constituencies as provided under Sections 12(9) and 36(6) of the NG-CDF Act.Mr Sirma urged Members of Parliament to submit their proposed projects for the 2026/27 financial year before the July 31 deadline to facilitate timely planning and implementation.He also announced that the NG-CDF Board had introduced a Quick Response (QR) code system that will enable MPs to monitor payments, project implementation and other activities in their constituencies in real time.The budget ceilings tabled in the House will guide constituency project planning and implementation once approved by Parliament.