10 years on, is CDF experiment worth it?

The Constituency Development Fund has gobbled up Sh139 billion in its 10 years of existence even as questions abound whether taxpayers have received value for that money.

A new report shows that the education sector has taken the lion’s share, receiving 46 per cent the funds, followed by water at 11.5 per cent, health 6.5 per cent, roads and bridges 6.2 per cent, and security at four per cent.

Agriculture got 1.3 per cent while the remaining 24.3 per cent has been spent on various emergencies, environment, sports and recurrent budget.

The CDF was rolled out in 2004 with a modest budget of Sh1.26 billion. The figure increased over the years to peak at Sh23.062 billion, which is the amount that was allocated in the current financial year.

But the jury is still out on whether the fund has served its intended purpose, and if it should continue being run by Members of Parliament, or if it should be amalgamated with other devolved resources, with governors in charge.

While critics of the CDF claim that billions of shillings have gone down the drain, its champions say it is a lesser evil when compared to how other government resources are used.

According to CDF board chief executive officer Yusuf Mbuno, only 1,765 (four per cent) of CDF projects have stalled so far while 24,222 (50 per cent) have been completed. Some 46 per cent are reported to be in various stages of progression.

The National Taxpayers Association of Kenya, a non-governmental organisation, has, on occasion partnered with the United Nations Development Programme to audit usage of the CDF. The initiative has unearthed widespread misuse of funds especially in the formative years.

Former Ol Kalou MP Muriuki Karue, who is credited with proposing the idea, says the fund has exceeded expectations.

“Taxpayers have got more than they bargained for; the expectations were low, and the achievements are enormous. On a scale of 1 to 5, I would give it a 2,” he says.

Mr Davis Adieno, the capacity development manager at Development Initiatives, also says Kenyans have got value for money “to a certain extent”.

“In terms of lifting people from poverty, CDF has not come through, but on service delivery, like refurbishing classrooms and building dispensaries, it has done considerably well,” says Mr Adieno.

NTA adviser Michael Otieno pegs the level of waste at an average of 25 per cent.

“So, if we are talking about a total of Sh139 billion, then you can easily conclude that in excess of Sh30 billion has gone down the drain,” he says.

Mr Otieno says some constituencies have wasted up to 30 per cent of money allocated while others have reduced it (wastage) to 13 per cent since 2004.

Mr Karue agrees that there have been “a few rotten apples” as some MPs either misused or took the money. However, he maintains that, compared to the level of wastage in other resource funds run by the Executive, the CDF has performed “very well”.

Besides stalled projects, Mr Otieno says money has been lost through ghost projects – meaning it has been stolen or through sub-standard work.

“We found that in most cases, the stalled projects are as a result of change of guard, where the new MP is not willing to continue with his/her predecessor’s initiatives,” says Mr Otieno.

“Again, most CDF committees have often failed to follow procurement procedures, hence the shoddy work.”

Mr Mbuno singles out poor project implementation as one challenge he attributes to poor planning capacity on the part of committees.

Some MPs have been accused of dictating to the committees to initiate projects near their home areas, which is often the case as MPs usually hand-pick committee members.

CLIPPED MPS' POWERS

The CDF Act was revised last year which clipped the MPs’ powers, who now only serve as ex-officio members while committee members are elected by the communities.

According to the Constitution, the government should allocate at least 15 per cent of the last audited budget figures to the 47 counties, while the CDF Act channels 2.5 per cent of national revenue directly to the constituencies.

Governors have, however, called on Parliament to channel the CDF through the counties, saying the fund has outlived its usefulness under the new dispensation, arguing that it is illegal since constituencies are not mentioned anywhere in the Constitution as units of development.

Mr Otieno says the calls for amalgamation are valid since it would remove duplication of roles. “There are no consultations between the governors and CDF committees as is required to avoid duplication,” he says.

He also cautioned that the existence of the CDF has triggered appetites of women representatives and county assembly members, who are now agitating for similar funds.