MPs Mount Pressure for timely NG-CDF Disbursement as Mbadi cites liquidity issues over delays » Capital News
NAIROBI, Kenya, Apr 17 – Lawmakers on Wednesday staged a spirited fight for the release of Sh21 billion out of the outstanding Sh33 billion National Government Constituency Development Funds (NG-CDF), accusing Treasury of delaying critical disbursements amid mounting needs in constituencies.
This follows revelations by Treasury Cabinet Secretary John Mbadi that they have released Sh7 billion with a commitment to release an additional Sh7 billion by the end of the month.
CS Mbadi defended the government’s fiscal position, attributing delays to liquidity constraints in the first quarter of the year due to statutory obligations, including loans, and Gen Z protests that have affected the fiscal headroom.
“The month of January, the month of April, the month of March these are usually very difficult months for us at the National Treasury and for the economy of Kenya as a whole. I want to explain to my colleagues that these are the months you must first pay capitation to schools in the first term,” he submitted on the floor of the house.
He further elaborated on the government’s tight fiscal schedule, pointing to heavy loan repayments in January, including Sh10.6 billion to China for the Standard Gauge Railway and other obligations totaling Sh75 billion.
The National Treasury explained that the loan obligations compounded by a ballooning wage bill that rose to Sh80 billion due to onboarding of JSS teachers and salary adjustments for lecturers and security forces has affected the liquidity issues in the docket.
“Our salary wage bill has moved from 75 billion to 80 billion per month. When you add loan payments and salaries, that’s already Sh150 billion before even touching counties or CDF,” Mbadi explained.
However, the lawmakers expressed their dissatisfaction with the responses issued by the National Treasury to explain the incessant delays over the NG-CDF funds.
Bumula MP Wanami Wamboka who raised the matter on NG-CDF delays on the floor of the house poked holes in the responses saying they had failed to address the grievances raised.
The Bumula legislator castigated the Treasury CS for failing to keep commitments made during prior engagements on the NG-CDF disbursement.
“A lot of the things the Minister has said are the things he said in Naivasha. And Hon. Mbadi, we respect you, but when you went to the Treasury as an expert, we expected you by the time you are giving commitment to this House, you are sure about the things you are saying,” Wamboka stated.
“You have put our Speaker not in very good light… What we are expecting from you today is Sh21 billion the bare minimum,” he added.
Borabu MP Patrick Osero Gisairo echoed the sentiments, insisting on urgency in disbursement timelines following past precedents where the National Treasury has failed to honor its commitments.
“CS, what we want is Sh21 billion before the end of this month if not today, and the rest to be cleared by the end of next month. Otherwise, this is just going to be in circles. This is another promise and we are not going to achieve anything. It’s the MPs who are being hog washed out there. Let the CS give us a clear roadmap,” Gisairo expressed.
Baringo North MP Joseph Makilap told Mbadi to formulate a framework to ensure that all NGCDF money is released in the first quarter to avoid delays due to statutory deductions.
“From the analysis of the minster, why don’t we exhaust all the money of the NGCDF within the first quarter of the financial year so that children of Kenyan cannot blame MPs for non-release of bursaries. The minster should be able to finance this NGCDF one and for all,” he said.
Mbadi however assured that once the debt sustainability issues are addressed the cash crisis over liquidity issues will be resolved.
“The problem we have is about liquidity. Loans were taken at a particular point in time, and most of them are maturing between now and 2032. That is why we have pressure. After 2032, you can go and look at our books and the public debt position,” he noted.