Treasury Cabinet Secretary John Mbadi has issued the way forward after he was put to task to address matters pertaining to the National Government Constituencies Development Fund (NG-CDF) following outrage from Members of Parliament over delays.
Mbadi appeared before the National Assembly on Wednesday, April 16 after he was summoned a day earlier, with lawmakers threatening stern action if he failed to honour the invite.
Mbadi was pressed to honour his earlier promise to release NG-CDF funds before Parliament went on recess as lawmakers lamented that the fate of thousands of needy students was in limbo ahead of school reopening.
In response, the finance minister confirmed that the treasury had released Ksh7 billion on Wednesday, as he committed to disburse a further Ksh7 billion before the end of April 2025 to slash the arrears.
“We have already transferred KSh7 billion,” Mbadi said, adding, "I cannot promise next week because we are paying salaries. But I will make sure we release another Ksh7 billion to the board so that we only have one month in arrears.”
On the issue of delays, the CS attributed it to financial pressure his docket was under in trying to meet numerous financial obligations, including county fund disbursements and national debt payments. Mbadi was adamant the delays were not intentional.
The CS added: “Sometimes we have to balance between paying debts, releasing money to CDF, and money for security,” he said, clarifying that delays in CDF disbursement were not intentional.
During the grilling session, the under-pressure CS further cautioned lawmakers against reckless remarks on the country's fiscal situation.
“Let me conclude and plead that as leaders, we need to be cautious. I listened to one of us argue that this country is likely to be taken to peril. That is an irresponsible statement, and it should not come from someone who has chaired the Budget and Appropriation Committee,” Mbadi cautioned.
Further, Mbadi denounced the notion that the country's economy was on its knees because of crippling debt, assuring that despite the struggles, Kenya was on course to become debt free by 2032.
Despite the CS's assurances, MPs were not convinced, as they faulted Mbadi for making similar commitments earlier in the year during a retreat.
The lawmakers were adamant that the Ksh7 billion commitment from the government should be Ksh21 billion.
