Our Journey

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Our Journey

 Our Journey

Twenty years ago, precisely 2003, a unique development concept was born in Kenya through the enactment of the Constituencies Development Fund (CDF) Act 2003, resulting in the birth of the Fund as is known to date.

The CDF Act 2003 was initiated through a private members Bill by Hon. Sen (Eng.) Muriuki Karue then Member of Parliament for Ol Kalou Constituency.

The CDF Act 2003 was assented to on 30th December, 2003 but officially commenced on 15th April,2004.

In April 2024, The Fund will be 20 years, a period which has seen tremendous impact in development.

Prior to 2004, most of the development programmes in Kenya were conducted within the District Focus for Rural Development (DFRD) Strategy framework which was implemented through Government Ministries, State Corporations, Local Authorities, Non-Governmental Organizations (NGOs) with limited involvement of private sector.

However, this development framework was characterized by many
challenges, including:

• Limited citizen involvement in planning, implementation, management and sustenance of development projects;
• Predominantly Government controlled development coordination structure;
• Donor dependent development with minimal Government budgetary input; Lack of legal framework to guarantee continuous flow of resources;
• Overburdening the citizens with self-help contributions through harambee fund raising approaches;
• Skewed development with visible national disparities.
• Slow community development evidenced by inadequate socio-economic infrastructure leading to low school enrolment, high insecurity incidences and low access to Government administrative services;
• Inadequate education financing resulting in poor education access, transition from primary to secondary and subsequently tertiary level; and Inadequate critical facilities in schools, especially science laboratories compromising quality learning and uptake of science subjects.
• Overburdening the citizens with self-help contributions through harambee fund raising approaches for school fees, school development and medical bills.

Pre-CDF Kenya Development Terrain

Initial Establishment of the Fund (2003-2007):

Establishment of the Fund: The Constituencies Development Fund was established by the CDF Act, 2003. The Act provided that 2.5% of all ordinary Government revenue collected in every financial year be paid into the Fund and disbursed under the direction of National Management Committee (NMC) constituted as per section 5 of that Act.

A total of Kshs. 1,260,000,000 was released to the constituencies during the 2003/2004 financial year. This amount was fully disbursed to the then 210 constituencies in accordance with the provisions of section 19 of the CDF Act 2003.

Each constituency received Kshs. 6 million for projects.

In 2005, the Parliamentary Committee oversighting the Fund then known as Constituencies Fund Committee (CFC) conducted a review of the CDF and suggested changes that would improve its planning and implementation.

In its report, the CFC proposed, among other things, a system of receiving and dealing with complaints in project planning, and to precisely define a system and authority to allocate funds.

Expansion and Growth of the Fund

As the Economy grew, the Fund increased steadily buoyed by economic reforms introduced during the first term of President Mwai Kibaki’s Government resulting in higher GDP growth hence expansion of the National revenue in the subsequent periods.

By financial year 2007/2008 the allocation to the Fund had grown to Ksh. 10.1 billion, Ksh. 23.06 billion by 2013/2014 financial year, Ksh. 33.2 billion in FY 2018/2019, 41.75 billion in financial year 2019/2020 and now Ksh. 53.53 billion in the current year FY 2023/2024.

NG-CDF has undergone significant evolution since its establishment in 2003. Here are distinct phases and the key milestones per phase.

Legislative Reforms

The enabling legislation, CDF Act 2003, was repealed in the year 2013 through enactment of CDF ACT 2013. The new Act was aimed at addressing governance challenges including transparency & accountability; effectiveness
and efficiency in the management; and aligning the Fund to the Constitution of Kenya 2010.

The National Government Constituencies Development Fund (NG-CDF) Act 2015 was enacted following the high court determination that the CDF Act of 2013 was unconstitutional.

NG-CDF Regulations, 2016 provided guidelines for effective implementation of the NGCDF Act 2015.

Administrative Reforms

Capacity Building Initiatives: The Board has overtime spearheaded capacity building programmes aimed to enhance the skills and capabilities of the Fund’s implementing and coordinating structures.

Efforts were made to digitize NG-CDF processes, including the development of online platforms for project proposal
submission, monitoring, and reporting, leading to increased transparency and accountability in fund utilisation.

Focus on Results and Impact: From 2015/2016 financial year, the Board put all Constituency Development Fund Committees on Performance Contracts signed annually with the Board to tie constituencies programme implementation to pre-negotiated and agreed targets.

These are evaluated every year and results shared with the constituencies for the purpose of entrenching the culture of continual improvement for excellency in performance.