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Category: CDF

Published on Thursday, 29 December 2011 13:30

Written by Super User

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Welcome to the Constitutency Development Fund Board Website. The Constituencies Development Fund was established through the CDF Act, 2003 as a public funded kitty that targets development projects at the grassroots level.

It is one of the several devolved funds set up by the Government to mitigate poverty and to harmonize the spread of development throughout the country. It aims at ensuring a portion of the Government Annual Revenue is earmarked for constituencies to finance development projects qualified on a priority basis arrived at by members of a constituency. It aims at ensuring a portion of the Government Annual Revenue is earmarked for constituencies to finance development projects qualified on a priority basis arrived at by members of a constituency.

It aims at ensuring a portion of the Government Annual Revenue is earmarked for constituencies to finance development projects qualified on a priority basis arrived at by members of a constituency.

Allocation Criteria

• The Constituencies Development Fund comprises of an annual budgetary allocation equivalent to at least 2.5% of the Government ordinary revenue.
• 3% is allocated to CDF Board for administration.
• 97% is allocated to constituencies in the following formula;
1. a) 5% of the 97% is allocated to Emergency Reserve
2. b) 75% of the balance is allocated equally amongst all the 210 constituencies
3. c) Balance of 25% is allocated based on the Constituency Poverty Index modeled by the Ministry of State for Planning, National Development & Vision 2030

Constituencies Statutory Allocation

Allocation Justification

• Emergency Reserve: to cater for emergencies that may occur within the Constituency such as drought or floods etc
• Bursary: set aside to help bright and needy students go to school. It took the gap that the famous “harambee’s” left
• Office Administration: this is for the normal running of the constituency office such as salaries & wages, rent, and other office utilities
• Recurrent Expenditure: this is to take care of the operating expenses. Such as motor vehicle maintenance
• Monitoring and Evaluation: this is to facilitate the CDFC to monitor the projects being implemented by PMCs

Around Ksh 70,956,300,000 has been allocated to CDF since its inception. The onus of disbursing and ensuring constituencies’ use their share of the money efficiently and accountably falls with the CDF Board pursuant to CDF (Amendment) Act 2007Act Section 5 that established the Board to replace the National Management Committee.

Funds Allocated To Constituencies From Central Government Since Inception In Kenyan Shillings

YEAR BILLION

• 2003/2004 - 1.260
• 2004/2005 - 5.600
• 2005/2006 - 7.245
• 2006/2007 - 10.038
• 2007/2008 - 10.100
• 2008/2009 - 10.100
• 2009/2010 - 12.329
• 2010/2011 - 14.283

TOTAL - 70.956

More than 60,000 CDF projects in various stages of completion have been established throughout the country. A significant percentage of these have already been completed and are in use

The impact of these projects is already being felt especially in the key sectors funded by CDF

• Education Sector 33.9%
• Education (Bursary) 12.3%
• Health Sector 6.5%
• Water Sector 11.5%
• Roads & Bridges 6.2%
• Security Sector 4.0%
• Agriculture Sector 1.3%
• Others(M & E, Emergency, Environment, Recurrent, sports etc) 24.3%

To a large extent, these are projects that have been identified by the community on priority basis and their completion and utilization should therefore be satisfying genuine needs of the community.

FLOW OF FUNDS

1. Treasury releases funds the CDF Board through the Ministry of State for Planning National Development & Vision 2030 in quarterly tranches
2. CDF Board disburse funds to the Constituencies Development funds Committee (CDFC) upon approval of projects
3. CDFC disburse funds to the Project Management Committees (PMC) through District Treasuries.
4. PMCs release funds to projects based on workplans

Management Structure

Constituencies Fund Committee (CFC)

• The Select Committee of the National Assembly that consists of a Chairperson and not more than ten other Members of Parliament.
• The main role is to oversee the policy framework and legislative matters that may arise in relation to the Fund and to continually review the framework set out for efficient delivery.

Ministry Of State For Planning National Development And Vision 2030

CDF Board is a fully fledged parastatal under the Ministry of State for Planning, National Development and Vision 2030 thus reports to the Minister who in turn reports to Parliament on matters touching on CDF.

Constituency Development Fund Board

The CDF Board is a corporate body responsible for the effective and efficient management of the Fund. This includes:

• Timely and efficient disbursement of funds to every constituency;
• Receive and discuss annual reports and returns from the constituencies; this includes financial reports, project implementation status reports etc
• Ensure compilation of proper records, returns and reports from the constituencies.
• Receive and address complaints and disputes and take any appropriate action;
• Consider project proposals submitted from various constituencies in accordance with the Act and approve for funding those project proposals that are consistent with this Act

Constituencies Development Fund Committee (CDFC)

This is a committee constituted and convened by the elected Member of Parliament within the first sixty days of a new Parliament or a by election and has a maximum of fifteen members.

Role

• To deliberate on project proposals from all locations in the constituency
• To rank the projects in order of priority for purposes of funding
• To ensure appropriate consultations with the relevant Government departments prior to the commencement of any project and further to ensure that project estimates are realistic
• To monitor the implementation of projects

Project Management Committees (PMC)

This is the committee selected by the community and charged with the responsibility of managing the development initiatives on their behalf.

Role

• Assists in project identification, documentation and forwards to the CDFC for deliberation and prioritization.
• Assist in preparing project work plans and budgets,
• Open and maintain project bank accounts
• To prepare project documents e.g. BoQs
• To mobilize and sensitize the community

Role of Citizens

• Provide opinion on specific development projects to be funded by CDF
• Provide membership to the PMCs and the CDFCs
• Provide grassroots and practical auditing of CDF projects
• Monitor CDF projects
• Ensure sustainability of CDF projects
• Whistle blowing

Role of Fund Account Managers

CDF Board has staff at the Constituencies who are responsible for the following:

• Preparation and submission of books of accounts and other operational and financial reports to the Board
• Keeps financial records for CDFC in liaison with the District Accountant on financial matters
• Maintain a register of all assets and liabilities of CDFC
• Prepare and maintain a list of all constituencies projects for submission to the CDF Board in accordance with the CDF Act
• Coordinate the implementation, monitoring and evaluation of CDF projects in the constituencies
• Be ex-official in the Constituency Development Fund Committees

Government Officers

• District Accountants (DA): they are mandatory signatories to the Constituencies account
• District Works Officers (DWO), District Health Officers (DHO), District Roads Engineers (DRE) etc.

The CDF Act requires that the Constituencies Development Fund Committee’s liaise with relevant Government departments to ensure that cost estimates for the projects are realistic.