CS Ukur Yatani explains why Treasury will not disburse CDF funds

Treasury Cabinet Secretary Ukur Yatani delivered a blow to Members of the National Assembly after disclosing that they would not get the annual CDF disbursements.

CS Yatani was speaking during Thursday's induction of Members of the National Assembly held at Safari Park Hotel.

The Cabinet Secretary said that the National Treasury would not allocate money for CDF because the Supreme Court ruled that the fund was unconstitutional.

“As far as I am concerned, the Supreme Court has pronounced the CDF, as it is, is illegal and therefore, we are not going to disburse funds. We will seek advice from the Attorney General for further direction.

“I know it is a very sensitive matter and one that members of the National Assembly hold dear,” he said.

Treasury CS Ukur Yattani Pulse Live Kenya

This comes a day after the National Government - CDF CEO Yussuf Mbuno assured the MPs that the constituencies would continue receiving the cash disbursements.

He argued that there was confusion between the NG CDF and the CDF.

"What the court ruled upon was the CDF Act 2013. The NG-CDF is based on the 2015 Act and was not affected by the Supreme Court ruling although there is still a court case that is coming for hearing," Mbuna said.

On Wednesday, Chief Justice Martha Koome told MPs during the induction that the CDF law goes against the principles of separation of powers between the national and county governments.

"The CDF offends the division of functions between the county and national govt...to allow a CDF an instrumentality of the national government to undertake functions devolved to the county.

“This clearly underscored the separation of power and that delivery of service is devolved to the county and the constituencies in the county,” she said.

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This is a direct contradiction from President William Ruto, who has previously assured MPs that the program would be continued.

However, Ruto acknowledged that the government would need to follow the law to make the funds available again.

DP Rigathi Gachagua seeing off President William Ruto at JKIA Pulse Live Kenya

“CDF for MPs is going to exist. We believe in the rule of law and we will work with the law so that it continues to be available,” Ruto said on September 7, 2022.

Constituencies have been receiving an annual budget of Sh100 million each, which is used to spur development projects, pay bursaries and solve other social, and economical issues at the constituency level.