MPs Adopt Canadian CDF Model; Here are Details

President William Ruto signs the Division of Revenue Bill in State House on April 27, 2023. With him are (from left): National Assembly Majority Leader, Kimani Ichung'wah, National Assembly Speaker, Moses Wetangula, Deputy President Rigathi Gachagua, and Attorney General, Justin Muturi.
President William Ruto signs the Division of Revenue Bill in State House on April 27, 2023. With him are (from left): National Assembly Majority Leader, Kimani Ichung'wah, National Assembly Speaker, Moses Wetangula, Deputy President Rigathi Gachagua, and Attorney General, Justin Muturi.
PCS

The National Assembly's Select Committee on National Government Constituency Development Fund has unveiled plans to amend the law, providing a legal foundation for Kenya's transition to a Constituency Development Fund (CDF) model similar to Canada's.

Kenya is planning to make the shift particularly because the Canadian model  is highly regarded for its efficiency in administering public funds. 

Speaking during a public participation meeting  in Baringo County on Monday, the Committee's chairperson, Musa Sirma, threw his weight behind the impending transition saying the Canadian Model promises a structured approach to constituency development.

According to the Chairperson, the model will also put people at the centre of the country's growth plans.

Sirma questioned the rationale behind opposition to the initiative, emphasising the need to draw inspiration from Canada's successful implementation of the model. 

He specifically pointed out the fact that Canada has been absorbing its entire kitty earmarked for constituency development, attributing this achievement to proficient fund management.

Kenya Kwanza MPs holding a Parliamentary Group meeting at State House Nairobi on April 11, 2023.
Kenya Kwanza MPs holding a Parliamentary Group meeting at State House Nairobi on April 11, 2023.
PCS

"Sometimes you wonder how a person in their right mind would want to stop such a noble idea. What would be their motivation?" posed Sirma while referencing attempts by different stakeholders to block the proposed law.

The Eldama Ravine Member of Parliament noted that, in contrast to Kenya's practice of returning unutilised CDF funds to the National Treasury, the Canada Growth Fund is meticulously allocated to its designated budgets, ensuring no funds remain unspent.

In light of this, the MPs are proposing a reassessment of bursary caps and the prioritisation of disbursements, mirroring the prompt addressing of pressing needs seen in the Canadian Growth Fund model.

As such, they proposed raising the allocation of the National Government Constituency Development Fund from 2.5 to 5-10 per cent, aiming for more impactful community projects.

"In the 2022/2023 Financial Year, the NG-CDF Fund was allocated Ksh47. 2 billion. The National Treasury has so far disbursed Ksh18 billion. In addition, a further disbursement of Ksh5 billion was processed," Sirma noted.

While collecting views from Baringo residents, the committee members explained that Canadian Growth Fund is helping the North American nation to use innovative public funding tools to attract the significant private capital.

They noted that the private capital is required to accelerate the deployment of technologies required to accelerate economic growth.

Sirma commended Baringo residents for attending the public participation exercise saying that the large turnout demonstrated eagerness to voice opinions on the crucial matter of CDF management.

He also celebrated how NG-CDF has thus far facilitated the establishment of day secondary schools, which has in turn promoted higher enrollment and retention rates.

Similarly, Dagoretti North MP Beatrice Elachi highlighted the positive impact of NG-CDF, and lauded its role in levelling the educational playing field.

She stressed how NG-CDF has not only transformed infrastructure but has also aided students through bursaries, emphasising that education is the great equalizer in society.

An aerial view of MPs during a Parliamentary committee on Energy on Tuesday July 18, 2023
An aerial view of MPs during a Parliamentary Committee on Energy on Tuesday, July 18, 2023
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Parliament of Kenya