Development projects across the country are set for a funding boost after Parliament approved more money for the National Government Constituencies Development Fund (NG-CDF), paving the way for all 290 constituencies to receive larger allocations in the 2026/27 financial year despite pressure on public finances.
The National Assembly approved an NG-CDF allocation of Sh61.798 billion, up from Sh58.797 billion in the current financial year, translating to a 5.1 per cent increase. The additional funding means every constituency will receive between Sh8.8 million and Sh11.3 million more than it did in the previous financial year.
National Government Constituencies Development Fund Committee Chairperson Musa Sirma presented the constituency budget ceilings to the House on Monday, saying the additional resources would help support development projects in every part of the country.
He told lawmakers that the committee held consultations with the Acting Chief Executive Officer of the NG-CDF Board before reviewing the approved budget estimates for the 2026/27 financial year and preparing the allocation schedule in line with the NG-CDF Act.
“The increase, though modest given the tight fiscal environment, is a step in the right direction towards catalysing equitable and transformative development interventions across the Republic,” he told the House.
The NG-CDF Act provides that the fund should receive not less than 2.5 per cent of the national government's share of revenue approved under the annual Division of Revenue Act.
Out of the Sh61.798 billion allocation, Sh3.09 billion has been earmarked for the administration and operational expenses of the NG-CDF Board, leaving Sh58.708 billion available for distribution to constituencies.
The committee applied the allocation formula set out in law, where 75 per cent of the money is shared equally among all constituencies while the remaining 25 per cent is distributed according to the number of wards in each constituency.
Under the equal share arrangement, every constituency will receive Sh151 million, accounting for Sh44.03 billion of the total allocation. The remaining Sh14.68 billion has been distributed based on the ward formula, leading to differences in the final allocations received by constituencies.
Sirma said the committee would continue seeking more resources for the fund in future budgets to meet growing development needs.
“We will push for a higher increment given the development needs of the constituencies and urge the House to support this endeavour,” he said.
The committee also confirmed that another Sh3.09 billion, representing five per cent of the total allocation, has been reserved as an Emergency Fund in line with the NG-CDF Act. The money will remain untouched unless emergencies arise and can only be used as provided under the law.
At the same time, the committee reported that 76 constituencies generated Sh24.66 million in Appropriations-in-Aid through rental income and other revenue from facilities developed using NG-CDF money. The funds have been added to the allocations of the affected constituencies as required under Sections 12(9) and 36(6) of the Act.
Sirma also asked Members of Parliament to submit their project proposals for the 2026/27 financial year by July 31 to allow enough time for planning and implementation.
He further announced that the NG-CDF Board has rolled out a Quick Response (QR) code system that will enable MPs to monitor payments, project implementation and other constituency activities in real time.
The constituency budget ceilings approved by the committee will form the basis for project planning and implementation once Parliament gives its final approval.