Most of developing nations are still struggling for efficient use of their resources. In order to overcome physical and administrative constraints of development, it is necessary to transfer the power from the central government to local authorities. In Kenya this was done through the Constituencies Development Fund, a form of fiscal decentralization. The constituency allocation policy was created with the intention to reach the mwananchi at the lowest level. It was to be controlled by the member of parliament of the given constituency though not allocated any budget because they were not entitled to any constituency. The fund was established to improve infrastructural aspects of the constituency, education through payment of bursaries and generally improve the constituencies at large.
ORIGIN
The idea of decentralization in Kenya is traced back to the period immediately after independence as in the Sessional Paper No.10 of 1965 on socialism and its application to planning. Socialism policy placed emphasis on rapid economic growth and human development and assumed poverty, ignorance, unemployment, health and income disparities would improve as a result of robust economy. The government therefore embarked on decentralization of programs to promote community participation in development so as to achieve goals set in African Socialism policy. This programs included: Majimbo system(1963),District Development Planning(1971),the Rural Development Fund(1975), and District Focus for Rural Development(1983/84).These programs however failed as a result of inadequate funding, failure to actively involve beneficiaries in development projects and government commitment among other factors. Due the failure of the latter decentralization programs led to the development challenges in the country which made the Kenyan government to initiate the Constituency Development Fund to foster development in the country. Unlike other development funds that filter from the national government through larger and more layers of administrative organs and bureaucracies, fund under CDF program go directly to the local levels and thus provide people at the grassroots the opportunity to make expenditure decision that maximizes their welfare through establishing development projects such as health and education programs perceived as main challenges of community development since independence.
CREATION
Constituencies Development Fund (CDF) came into existence in Kenya after the National Rainbow Coalition (NARC) came into power and was initiated by Honorable Muriuki Karue, the former Member of Parliament for Ol Kalou. CDF was established in Kenya in 2003 through CDF Act in the Kenya Gazette Supplement No. 107(Act No. 11) of January, 2004 which had been enacted in parliament in 2003.The Act was later amended in 2007. In line with constitution of Kenya 2010, the CDF Act 2003 as amended in 2007 was again repealed and replaced in January 2013 with CDF Act 2015 aligning it as per the new constitution of Kenya. The CDF Act 2015 was subsequently succeeded by the current National Government Constituencies Development Fund (NG-CDF) amendment Act 2016.The Fund is domiciled within the ministry in charge of National Economic Policy and Planning, currently the Ministry of Devolution and Arid and Semi-Arid Lands(ASAL) Areas.
The Constituencies Development Fund (CDF) Act of 2003 was created with a primary objective of addressing poverty levels at the grassroots level. This is done by dedicating a minimum of 2.5% of the government’s revenue to the grassroots development. From the financial year 2005/2006 the allocation began to take considerations of poverty levels within constitutiency. Then on 23% of CDF is allocated to each constituency’s poverty levels (the poorest getting the most) while 75% of the fund is allocated equally amongst all the 210 constituencies. A maximum of 15% of each constituency’s annual allocation may be used for education bursary scheme and fund school fees, examination fees and even continuous assessment and mock fees. Expenses of running constituency offices, which may include rent and utilities, staff salaries and committee allowances, should not exceed 3% of the annual constituency allocations, while running and maintenance of motor vehicles and equipment must not take more than 3%.
Since 2003/2004, the fund supported mainly in the areas of education, agriculture, roads, security, environment and sports. However, the National Government Constituencies Development (NG-CDF) Amendment Act of 2016 introduces the major shift in the scope of projects eligible for funding. Under this Act only projects falling within the functions of the national Government as outlined in the constitution of Kenya will be funded. This effectively means that moving forward; the fund will concentrate primarily on education, security, sports, environment sectors and other national government residual functions.
Other objectives of NG-CDF include: achieving equitable distribution of development resources across regions and to control imbalances in regional development brought about by partisan politics; It targeted all constituency level development projects particularly those aiming to combat poverty at the grass roots; Facilitates the putting up of water, health and education facilities in all parts of the country including remote areas that were usually overlooked in national budgets.
The Key Changes Brought About by the NG-CDF Act 2015.
Clear provision on objects of the Act(section 3 of NG-CDF Act);the objects of the Fund are now clearly provided for in the Act by defining the Fund as specific to the National Government in the furtherance of its functions.
Clear specification on establishment of the Fund(section 4 of the NG-CDF Act);The Act specifies that the Fund is drawn from the National Government’s share of Revenue in accordance with the Division of Revenue Act enacted pursuant of Article 218 of the constitution. This provision serves to correct the view that CDF introduces a third level of revenue sharing contrary to the constitution.
Nature of projects to be funded(section 24 of the NG-CDF Act);The eligible projects under the NG-CDF Act are those entailing works and services failing under the functions of the National Government as provided for in the Constitution. This is an important provision in compliance with the High Court, which determined that the Act earlier formulated violated the principle of separation of functions between the National and County Governments as provided for in the constitution, connoting CDF can implement any projects regardless of whether it falls under the functions of the County or National Government.
Tenure of office for the National Government Constituency Development Fund Committee(section 43 sub-section 8 of the NG-CDF Act); The term of office of the members of constituency Committee shall be two years and shall be renewable, but shall expire upon appointment of a new constituency Committee.
Introduction of Social Security Programmes eligible development projects(section 48 of the NG-CDF Act); Section 48 of the NG-CDF Act introduces Social Security Programmes as eligible development initiatives under the Fund, enhances the ceiling of allocation of education bursary schemes, mock examinations and continuous assessment test from 25 per cent of annual constituency allocation to 35 per cent. This rationale is to provide for greater focus on education as National Government Function and also to cater for Social Security Programmes, which is newly proposed type of project under CDF.
Introduction of Constituency Oversight Committee(section 53 of NG-CDF Act); This Act introduces an additional committee at the Constituency level, the Constituency Oversight Committee whose main function is to oversee the projects undertaken under Act and to sensitize and receive feedback from members of the public during forums convened for the said purpose.
STRUCTURE
Organization structure is largely defined by researchers as how tasks are formally divided, grouped and coordinated or controlled and basically servers as contributory element of organizational structure (Robbins, 2007). Accordingly, the identification of organizational life is commonly achieved through studying the structure. Understanding organizational structures trickles down to the knowledge of the concept of policies prescriptions of authority and hierarchy of responsibility.
According to the CDF Act No.30 of 2015, the structure of the National Government Constituencies Development Fund (NG-CDF) is categorized into three: Implementation Structure, Audit Structure and Oversight Structure
IMPLEMENTATON STRUCTURE.
It refers to the administrative entity where projects and programs are put into effect.
The National Government Constituencies’ Development Fund has three management organs namely: The National Constituencies Development Fund Board at the national level, The National Constituencies Development Fund Committee at the constituency level, the National Government Constituencies Development Fund Project Management Committee (PMC) at the community level.
a) The National Government Constituencies Development Fund Board.
The NG-CDF Board is a body failing under the Ministry of Devolution and ASAL Areas. The ministry ensures budgetary provisions and offer policy direction to the Fund. The National Treasury finances the NG-CDF budgets and provides financial guidelines for effective and efficient management of the Fund. The NG-CDF Board shall be administered by a board of directors which shall consist of:
The Principal Secretary in the State Department relating to economic planning or a designated alternate, not being below the level of Director of Planning;
The Principal Secretary in the State Department for the time being responsible for the matters relating to finance or a designated alternate not being below the level of Deputy Director of Budget;
The Attorney General or his designated alternate not below the level of Senior State Counsel;
Four persons, qualified in matters relating to finance,accounting,engineering,economics,community development, or law appointed by the cabinet secretary taking into account regional, ethnic and gender balance as per the Constitution of Kenya.
Two persons qualified in matters related to finance, accounting, economics, community development or law appointed by the Cabinet Secretary to remedy regional imbalance that may have occurred during nomination.
The chief Executive who shall be an ex-officio member.
The corporation Secretary who shall be appointed by the Board and shall be the Secretary to the Board.
The Cabinet Secretary shall appoint the Chairperson of the Board. Names and Curriculum Vitae of the persons nominated to be appointed as the members of the board are submitted to the parliament for approval before appointments.
The NG-CDF Board derives its mandate from the NG-CDF amendment Act 2016.Specifically, the functions of the Board include;
Ensure efficient management of the fund;
Consider project proposals submitted from various constituencies, approve for the funding those project proposals that are consistent with the Act and send money to the respective constituency fund account of the approved projects;
Ensure timely and efficient disbursement of funds to every constituency;
Receive and address complaints and disputes and take any appropriate action;
Receive and discuss annual reports and returns from the constituencies;
Perform such other duties as the Board may deem necessary from time to time for the proper management of the fund.
b) The National Government Constituency development Fund Committees.
The NG-CDF Committee develops project proposals in consultation with the mwananchi through periodic ward level open forums, submits them to the NG-CDF Board for approval and facilitates the PMCs in planning and implementation and sustenance of projects once completed. This committee comprises of;
The National Government official at the constituency level as may be designated by the Cabinet Secretary or an alternate;
Three men nominated by the ward development committees and one whom shall be a youth at the date of the appointment;
Three women nominated by the ward committee development committees and one of whom is a youth at the date of appointment;
One person with disability nominated by the ward development committees;
One person nominated from among the active Non-Governmental Organizations in the constituency;
An officer of the Board seconded to the constituency Development by the Board who shall be ex-officio and shall serve as the secretary to the Constituency Development Fund.
Its main task is to prioritize projects from the locations. The list of priority projects is then submitted to the parliament by the area Member of Parliament. This committee is also charged with the management and implementation of the national constituency development fund.
c) The National Government Constituencies Development Fund Project management committee.
It is a public entity by the government procurement rules and regulations in initiating project requests. The NG-CDF Committee and the Board shall be responsible for monitoring the implementation of projects. Its functions include;
Implement projects with assistance of relevant government department.
To priotize and approve all project proposals from all wards in the constituency considered to be beneficial to the constituency.
To open and maintain an independent project bank account for the national government constituency development fund.
Consult with relevant government departments to ensure that the cost estimates for projects are realistic.
Ensure that projects for funding comply with NG-CDF.
Ensure preparation of reports and financial statements and submission of the board.
- County Project Committee
Comprises of;
The senator, the Members of Parliament from the County, the county women representative and the Governor;
The National government official at the county;
The chairpersons of the constituencies development fund committees in that county;
The officer in charge of county treasury;
The officer in charge of county planning;
An officer of the Board seconded to the county Projects Committee by the Board who shall be an ex-officio and shall serve as the Secretary to the County project committee.
The main task of the county Project Committee is to prepare list at the beginning of every financial year, prepare and circulate to the various NG-CDF Committees in that county a list of other government allocations for various projects in the county.
AUDIT STRUCTURE
It refers to the inspection of the National Government Constituencies Development Fund’s account financial activities done by the auditor general who reports to the national parliament annually. The national government constituency development fund auditors in every constituency traces the utilization of the funds and regularly reports to the national treasury with a copy to the Board. The Board establishes its own internal audit department that reviews constituency accounts and provides assurance on efficient use of funds.
OVERSIGHT STRUCTURE
It is the action of inspecting the activities taking place within the National Government Constituencies Development Fund. The national Assembly allocates funds to the NG-CDF in line with the annual budgetary cycle. The National Assembly ensures legal framework is in place for effective management of the fund. It also selects committee of the National Government Constituencies Development Fund that oversees effective management of the funds.
Achievements of the National Constituencies Development Fund.
Improved the education sector. Helping the needy students from poor backgrounds. The National Government Constituency Development Fund program has introduced bursaries for the bright students in each constituency where they are supported through fee payment enabling them to have access to education. The funds are also used in construction of tuition blocks, laboratories, dormitories and administration blocks. Schools are built through the funding and are equipped in terms of teachers and facilities therefore increasing quality education and aiding free primary education.
Improved health facilities. Dispensaries and hospitals are now more developed than ever before. Stalled dispensary buildings and projects are now being completed in record time as a result of funding from the National Government Constituency Development Fund kitty. In case of emergency cases such like accidents the wounded are first taken you dispensary for first aid then to hospitals leading to more survivors. Serious diseases are discovered in the smaller hospitals then thoroughly evaluated in the larger hospitals leading to fewer deaths.
Availability of water facilities. Water resources are now reaching more and more people and therefore availability of water which was a major issue is now been addressed. Remote areas in North Eastern regions which have been suffering from drought have Lorries which supply water when it is scarce. Projects of digging boreholes have been funded by the National Government Constituencies Development Fund to help supply water to the community therefore people walk short distance to get water.
Creation of job opportunities. It has increased the individual owned enterprises. This has been made possible through loaning of funds to individuals with whom they use for their business activities. The National Government Constituencies Development Fund, funds projects such as construction and development of infrastructural structures such as schools, hospitals, and roads which requires labor hence creates job opportunities for the youths. Through the establishment of the National Government Constituencies Development Fund, the board, committees and the project management committee called for administrators in offices hence creating job opportunities for the post.
Creating awareness. Through mass education on various issues such as HIV/AIDS awareness where people are educated on how to prevent disease infection, minimize stigmatization and give advice to the infected. Enlightening the youths on issues such as effects of drug abuse, idleness, educate youths on how to create jobs. The development fund also encourages youths to join profitable social groups such as welfare groups, SACCO(s) and Uwezo funds.
It has led to Improved Agriculture. The National Government Constituencies Development Fund through its agricultural based projects such as establishment of greenhouses which enable plantation of vegetables such as kales, cabbages which prevent heating from direct sunlight thus improves their quality. Construction of dams proving water for irrigation. Construction of fish ponds that enable rearing of fish. Educating farmers on the best seeds to plant, fertilizer to apply and the best pesticides in case of pest attack. Through these projects the agricultural activities have tremendously improved.
Rural Electrification. Funds have helped to bring power to rural areas. This has helped many rural areas in Kenya to have access to cheap electricity.
Weakness of the National Government Constituencies Development Fund.
NG-CDF is used as a tool of embelzzment of public funds; as opposed to it being a devolved development, part of the cited malpractice area is in entire procurement process of the projects’ material goods and services. The public rants that the procurement is highly unsatisfactory with numerous cases of corrupt activities including collusion of some NG-CDF Committees members being suppliers, which raises the question of conflict of interest. There is also the aspect of poor entrepreneurial attitude by the Small and Medium Enterprises (SME) who are supposed to be promoted by supplying to NG-CDF projects but majority lack the ethics to pay taxes (evasion of taxes) or even be registered in order for NG-CDF Committee to contract them.
Poor leadership. This is a major challenge facing challenge facing NG-CDF. The challenge is majorly attributed to recruitment process of the NG-CDF committee members. It is established that almost every committee members are nominated by the Member of Parliament who rewards his friends without taking into account academic qualifications, experience and leadership ability of the nominees. For example in a research carried in Borabu or Mugirango Constituency, the constituents were not involved in choosing local representatives, they fail to provide necessary support to the leaders perceived to be having been imposed on them. In addition, there were no checks and accountability mechanism to ensure proper utilization of funds allocated to various projects because the Members of Parliament nominees (NG-CDF committee) hardly reveal cases of misappropriation.
Low level of Community Participation. The challenge is attributed to failure to involve community members in selecting NG-CDF committee in identifying National Government Constituencies Development Fund projects. The community members are not consulted by the CDF management before a NG-CDF project is designed and implemented in their locality. This show that even if the aim of NG-CDF is to provide residents at the grassroots the opportunity to decide on and implement projects that address their most felt needs, the constituents’ members do not participate in such decision making. Therefore, failure to involve community members reduces their participation in those projects and hinders accountability and monitoring of utilization of resources. A practice that can easily lead to misappropriation of the public funds.
Lack of NG-CDF projects sustainability. Most NG-CDF projects are not based on the most felt needs of the community and the beneficiaries are not generally and mostly involved in identification of projects hence some projects remain utilized after the completion. This leads to wastage of tax payer’s money in initiatives that never change living standards of the local. For instance, cattle dip is established by the NG-CDF but community members are not utilizing it. This leads to wastage of resources that could be used to initiate other important projects to the community. It is therefore important for the NG-CDF management Committees to organize public “barazas” to gather views concerning their felt needs and how these can be addressed. Failure to consult community members may lead to withdrawal of community support a key ingredient in community development.
Unequal NG-CDF distribution criteria. Most scholars argue that distribution of funds to initiate community development projects never took into consideration region balance. All regions in the constituency never obtain equal share of funds. Inequality is seen on the construction of road, distribution of HIV/AIDS NG-CDF funds, and equipping schools with important facilities like computers. The NG-CDF distribution and operations depends on the whims of the Member of Parliament. Since the MP and his cronies are involved in the fund management they tend to channel more resources to various regions based on the MP’s relationship with the local areas.
Poor project planning. This is attributed to lack of project management skills among NG-CDF committee members most of whom had been handpicked by the Member of Parliament. Such leaders do not understand the intricacies involved in project management, which involves the participant of community members in all stages of the project cycle. Poor project planning hinder sustainability of such development initiatives, or lead to implementation of project that does not address the most felt needs of the community members. Most of the NG-CDF committee members have secondary education only as the highest academic qualification, P1 grade and diplomas. Thus lack of project management knowledge among NG-CDF committee members hinders effective initiation and implementation of community development initiatives.
Project duplication. Members of Parliament are eager to have political support may inmate new projects under their names which are essentially duplications of predecessors work. This is a result of poor planning.
jerop5614 answered the question on December 22, 2018 at 17:46