Kenya's Auditor-General Exposes KSh 4.1b CDF Bursaries Unaccounted for by MPs
- Kenya's Auditor-General, Nancy Gathungu, highlighted how MPs misappropriated the National Government-Constituency Development Funds (NG-CDF)
- Gathungu's report indicated that 125 constituencies lacked the necessary documentation showing they disbursed bursaries
- This comes even as thousands of underprivileged students across the country were denied support for a smooth education
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.
Kenya's Auditor-General, Nancy Gathungu, has revealed that several Members of Parliament (MPs) could not account for KSh 4.1 billion in National Government-Constituency Development Funds (NG-CDF).
Source: Facebook
Gathungu's report showed that 125 constituencies claimed to have supported thousands of students with NG-CDF funds in the year ending June 2024, but they lacked the necessary documentation to substantiate these claims.
Why are Kenyan MPs on the spot?
This casts a harsh spotlight on the NG-CDF, a fund fiercely defended by MPs for its political leverage.
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"Eighty-six NG-CDF (offices) did not provide supporting documentation for bursary disbursements totalling KSh 2,122,652,960, including acknowledgements, receipts from beneficiary institutions, and information about students' admission numbers," Gathungu disclosed.
At the same time, 39 constituencies were unable to support KSh 1.97 billion bursary disbursement, raising concerns about the usage of the funds, while thousands of students in need were denied essential assistance for a smooth education.
The exercise was potentially biased, according to Gathungu, because the offices were unable to produce documentation demonstrating the criteria used to determine bursary awards and how candidates had been vetted.
"Bursary disbursements totalling KSh 1,971,099,695 for thirty-nine (39) constituencies were made without supporting documentation, such as minutes or reports from the bursary vetting committee or policy and/or guidelines on bursary awards. This could have resulted in bias and the exclusion of worthy students," she explained.
The total expenditure by the NG-CDF in the financial year 2023/2024 amounted to KSh 55.3 billion, representing an absorption rate of 85%.
This was an improvement from the 2022/2023 financial year, which had an absorption rate of 75%.
Is NG-CDF legal?
Since its introduction by Kenya's third president, Mwai Kibaki, in 2003, the fund has been in operation.
Source: Twitter
It has been used for the construction of classrooms and police stations as well as student bursaries.
In recent years, the NG-CDF's legitimacy has been called into question.
Every year, each constituency receives at least KSh 100 million, which the lawmakers have utilised for community development initiatives.
However, civil society organisations successfully petitioned the court to declare it unconstitutional.
Chief Justice Martha Koome headed a five-judge panel that ruled that the CDF Act breached the division of revenue.
Why is Raila against NG-CDF?
Earlier, TUKO.co.ke reported that ODM leader Raila Odinga was against the NG-CDF.
Raila frequently accuses the MPs of greed, claiming that they are working to obtain the money while denying the counties additional funding.
The former prime minister claims that by holding onto the funds, the MPs are going beyond their authority, even though their responsibilities are restricted to representation, legislation, and supervision.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
