MPs defy Raila over CDF billions as storm brews

MPs, including ODM troops, have defied their party boss Raila Odinga’s call to disband the National Government Constituencies Development Fund as big clash looms over the multibillion-shilling kitty.

The details emerged as the government gave in to pressure from the lawmakers and released Sh7 billion for the fund, with Treasury CS John Mbadi promising a similar amount in two weeks.

For two consecutive days over the weekend, a tough-talking Raila said CDF, alongside other resources like the road maintenance levy must be given to county governments.

“The courts declared CDF unconstitutional but MPs have clung to it. They must stop it. This is something I will be speaking about very strongly. If MPs don’t abolish this thing, it will be an election agenda,” Raila declared on Friday.

Critics have said the billions have become an easy target for corruption with some MPs becoming overnight millionaires.

On Tuesday, former National Assembly Speaker Justin Muturi termed CDF a corrupt and illegal slush fund.

“NG-CDF is a corrupt, illegal and unconstitutional slush fund to unjustly enrich the MPs, their families and cronies and should, therefore, be scrapped,” Muturi said.

Interestingly, National Assembly Speaker Moses Wetang'ula, a principal in Kenya Kwanza is also sucked in the row and is supporting MPs.

“Every time CDF has been threatened, yours truly has been on the front line to defend it. I will continue doing so. When CDF was under attack by activist who went to court, yours truly here has hired the best lawyers,” Wetang'ula said.

Raila’s tirade came after MPs published a new bill, the Constitution of Kenya (Amendment) Bill, 2025, in which they seek to ring-fence the control of the CDF billions.

Ironically, like other funds, audit reports have laid bare the financial misappropriation and outright graft in the management of the cash.

The new bill is sponsored by Rarieda MP Otiende Amollo (ODM) and Ainabkoi counterpart Samuel Chepkonga (UDA).

But in Parliament, ODM MPs have ganged up with their colleagues against Raila, vowing to do everything to save the fund they argue has transformed many parts of the country.

Speaking on the floor of the House, the Azimio MPs, led by Minority leader and Suna East MP Junet Mohamed, vouched for the Fund.

“This NG-CDF has a lot of enemies for no apparent reason. There are many people who are fighting CDF because, I think, they don’t have the right information,” Junet, a close Raila ally said.

The MPs argue the fund is a lifeline for education, bursaries and grassroots development, and that ignoring it would be politically suicidal.

“NG-CDF is not for members of Parliament—it is for the people of Kenya. There are children who won’t go to school, communities that will lack security infrastructure. The Treasury has no choice,” Majority leader Kimani Ichung’wah said.

According to the Suna East MP, the Sh54 billion kitty has been a game changer at the grassroots, as it is the only money going to Kenyans directly with minimal administrative costs.

“County governments and devolution has been in existence for over 10 years, it is important for Kenyans to take stock. It is only CDF that has the least administrative expenditure unlike counties, which take all the monies to the recurrent expenditure,” he said.

Bondo MP Gideon Ochanda dismissed arguments that NG-CDF should be a devolved fund, saying the court has pronounced itself on the matter.

“Those calling for the scrapping of NG-CDF should allow both levels of government to operate independently, as guided by law. The NG- CDF kitty has nothing to do with the county governments," he said. 

Over the weekend, Raila came out strongly against members of the National Assembly accusing them of overstepping their mandate and undermining devolution by taking over roles meant for the devolved units.

Raila, a long-time critic of CDF’s legal framework, has maintained that the fund undermines the principle of separation of powers and is prone to abuse.

“If governors are corrupt, they are dealt with but you cannot block resources from the counties and you remain with the resources and then blame governors for doing nothing. Governors must be empowered,” Raila stated.

The tussle on the billions come on the background of a court ruling declaring the kitty unconstitutional and recommended it be winded up by June next year.

The three-judge bench–justices Kanyi Kimondo, Roselyne Aburili and Mugure Thande– directed that all programmes, projects and activities should end in 24 months.

MPs have, however, challenged the verdict in a higher court while crafting a new law to anchor the fund.

But according to constitutional lawyer Ekuru Aukot, the 2024 High Court ruling did not give the MPs any avenue to regularise NG-CDF.

“The judges would normally suspend a judgment to allow completion of certain projects, for example they took cognisant of the fact that there were projects that were already in place, they give such projects a period of one or two years to complete,” Aukot told the Star on the phone.

“When CDF was declared unconstitutional, they [MPs] brought something called the National Government Constituency Fund so that the Executive would try to appease members of Parliament but when you see what is happening on the ground is just stealing.”

On Wednesday, Mbadi said the government had disbursed Sh7 billion to the kitty

The CS who was appearing before the plenary explained the delay that has seen MPs threatening to shut down Parliament.

According to Mbadi, the delay was occasioned by serious liquidity constraints that followed last year’s youth led demonstrations.

“This is not the first time we have had delays, in fact, if you look at the last financial year, it was worse. I am committing that you will not have problems. I know there are issues of bursaries and we have released Sh7 billion,” the CS told Parliament.

“I want to try and release another Sh7 billion before schools open at the end of the month so that you sort out the bursary and make sure the remaining balance is not carried over to 2025-26 financial year.”

According to Mbadi, the first quarter of the year—January through March—is particularly demanding for the government, which requires more than Sh150 billion to settle pressing needs, including school capitation, civil servant salaries and external loan repayments.

He singled out school capitation, which alone consumes Sh96 billion annually, with Sh48 billion needed upfront. He also pointed to heavy debt servicing obligations such as bilateral loan repayments for projects like the standard gauge railway, predominantly financed by China.

Despite his explanation, MPs remained unconvinced, accusing the Treasury of mismanaging priorities and sidelining constituency-level programmes that directly impact ordinary Kenyans.