The stalemate between members of parliament and the National Treasury regarding the legality of the National Government-Constituency Development Fund (NG-CDF) was brought to an end after a long wait.
This followed a statement from Treasury Cabinet Secretary Prof Njuguna Ndung'u on Thursday, December 1, indicating that the government will resume disbursing the funds beginning December 9.
The CS through a statement read by National Assembly Speaker Moses Wetangula noted that Attorney General Justin Muturi advised that the Supreme Court ruling that nullified CDF did not touch on NG-CDF.
As such, AG Muturi noted that the NG-CDF Act of 2015 would remain in force with no hindrance.
However, the AG in his statement acknowledged the existence of a pending matter in court challenging the constitutionality of the NG-CDF. He advised that the fund would remain operational until the case is heard and determined.
The Treasury stated that Ksh2 billion will be paid to the constituencies on a weekly basis from the above-mentioned date and a total of Ksh44 billion will be reimbursed by the 23rd week of disbursement.
“In light of the advice from the Attorney General, the National Treasury and Economic Planning confirm that it will commence disbursement to the NG-CDF tranches of Ksh2 billion on a weekly basis, with effect from 9th December 2022,” read the statement in part.
“The Attorney General has therefore advised that the NG-CDF of 2015 technically remains in force until such expressed declaration is formally made by the High Court or other superior court.”
In addition, CS Ndung'u noted that the national government would settle all liabilities incurred by the nullified CDF in response to the cries made by various stakeholders about pending bills.
The decision came after a prolonged push and pull between MPs and the National Treasury. MPs had threatened to boycott house business until their demands were adhered to.
In an earlier response to the MPs' call, Treasury CS had noted that the government would act only after consulting the Attorney General regarding the particulars of the Supreme Court ruling that voided CDF.
Meanwhile, the legislators embarked on a process to entrench the NG-CDF in the constitution permanently.