The National Treasury has announced that beginning January 2026, KSh5.3 billion will be released every month to clear outstanding arrears owed to the National Government Constituency Development Fund (NG-CDF) Board.
The disbursements are expected to ease pressure on constituencies and enable Members of Parliament to issue bursaries to students before schools reopen.
Treasury Cabinet Secretary John Mbadi confirmed that the January tranche will push the total amount released so far to KSh32.2 billion. Mbadi explained that the structured monthly plan will continue until June 2026, when the government expects to have fully settled all arrears in line with a court directive.
“In January, we will disburse KSh5.3 billion more to the CDF Board, taking the total amount disbursed so far to KSh32.2 billion. Every month, we will be disbursing KSh5.3 billion from January to June. We are doing very well on this so far,” Mbadi said.
The Treasury has already released KSh27 billion out of the KSh58.8 billion owed to the NG-CDF Board. The planned releases are intended to ensure constituencies can meet immediate funding needs, particularly bursaries for learners returning to school.
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Kitui Central MP Makali Mulu noted that at least KSh600 million is required this month alone to adequately support students.
“The money has been coming in very well. In December, just before recess, we received KSh400 million, but we will need more before the end of the year to plan for the bursaries,” Mulu said. He however expressed concern over whether the Treasury will manage to clear all obligations before the NG-CDF officially winds up in June 2026.
In the current financial year, the NG-CDF was allocated KSh58,797,728,147. Mbadi had earlier, on October 16, 2025, written to the National Assembly through the Clerk, outlining a clear timetable for disbursements. In the letter, he assured MPs that by June 2026, all arrears from previous financial years would be cleared.
The NG-CDF Act of 2015 stipulates that disbursement to constituency fund accounts should begin with 25% of the annual allocation at the start of the first quarter, followed by three equal instalments at the beginning of the second, third and fourth quarters.
By Masaki Enock
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