National Assembly Hansard: Tuesday, 3rd November, 2026

REPUBLIC OF KENYA THIRTEENTH PARLIAMENT

3rd November 2026

Vol. V No. 98

PRAYERS

QUORUM

COMMUNICATION FROM THE CHAIR

DEMISE OF HON. OTIENO MAK’ONYANGO

Hon. Members, I have a message from the Senate. First of all, I welcome you back to the House after an eventful week. I have no doubt you interacted well not only with your constituents, but also with your families. You are welcome back to this session.

Equally important, Hon. Members, although I have not received a written communication, I wish to convey that we lost a former Member of this House, Hon. Otieno Mak'Onyango, who served with Hon. Julius Sunkuli and I in the 7th Parliament. He was a familiar face around Parliament. He was a veteran journalist who was very active in the 1970s. He came from Siaya County and is expected to be laid to rest in the next few days. He was also an active researcher in this House.

The 7th Parliament, for those of you who were old enough to read what was going on, was one of the most violent Parliaments this country has ever had. We had two muscled men constantly watching over the Mace. On one occasion, the current Prime Cabinet Secretary, who was then the Minister for Finance, came to read the Budget and the only words that were audible were, “Mr Speaker, Sir, I beg to move” and nothing more. That was the Parliament in which Hon. Otieno Mak'Onyango, Hon. Sunkuli and I were in. It was a Parliament that had very active debates. We had the late Hon. Martin Shikuku, who could address this Parliament on one Bill for an entire week, from Tuesday to Thursday, without the Speaker finding him

repeating himself. We had people like Prof. Rashid Mzee, who, when speaking Kiswahili, would make you think he had invented the language. There were many others.

In honour of the late Hon. Otieno Mak'Onyango, I encourage us to stand and observe a minute of silence.

(Members observed a moment of silence) May his soul rest in eternal peace. Amen. Yes, Hon. Sunkuli. Do you want to eulogise the late Hon. Otieno Mak’Onyango?

National Planning. He was among the representatives of retired Members of Parliament who appeared before the Committee. It was quite unfortunate that former Members of Parliament were receiving pension of only Ksh4,000 or Ksh5,000. When they appeared before the Committee, we proposed that their pension should not be pegged on the Shilling but should instead be set at about $1,000 per month. However, the proposal did not succeed because the National Treasury opposed it. That is how I came to know him, as he appeared before the Departmental Committee on Finance and National Planning a couple of times. I pray that his soul rests in eternal peace.

Thank you.

COMMUNICATION FROM THE CHAIR

APPOINTMENT OF MEMBERS TO MEDIATION COMMITTEE ON THE KENYA SIGN LANGUAGE BILL

Consequently, the Bill stands committed to a Mediation Committee pursuant to the provisions of Article 112(2)(b) of the Constitution. The said amendments were passed by this House on Wednesday, 24th June 2026 following which I referred them to the Senate for concurrence.

Hon. Members, following the decision of the Senate, the Speaker of the Senate has nominated the following Senators to serve in the Mediation Committee on the Bill:

1. 1. Hon. Sen. S.C. Okenyuri
2. 2. Hon. Sen. George Mbugua
3. 3. Hon. Sen. Peris Tobiko
4. 4. Hon. Sen. Kiprono Chemitei
5. 5. Hon. Sen. Joe Nyutu
6. 6. Hon. Sen. Moses Kajwang, CBS
7. 7. Hon. Sen. Beatrice Ogola
8. 8. Hon. Sen. Hezena Lemaletian
9. 9. Hon. Sen. Crystal Asige

Hon. Members, in order for the Mediation Committee to be fully constituted, I direct the Leader of the Majority Party and the Leader of the Minority Party to expeditiously nominate Members to be appointed to the Mediation Committee. Once I receive the names, I will notify the House of the facts. Thereafter, the Mediation Committee will be expected to attempt to develop an agreed version of the Bill in accordance with the provisions of Article 113 of the Constitution. The House is accordingly informed.

Hon. Members, before presenting the Petition, allow me to acknowledge the following schools present in the Speaker's Gallery: Saleem Academy from North Imenti, Meru County; The Frontier Pioneer School from Ainamoi, Kericho County; and, Mbukiwa Sirata School from Samburu Central, Samburu County. We also have students from Starehe Boys' Centre, who are undertaking voluntary service in Parliament for a period of two weeks. On my behalf and on behalf of the House, we welcome the students, their teachers, and those accompanying them to the House of Parliament. Hon. Dawood, you wanted a minute to welcome your school. Go ahead, before I present the Petition.

PETITION

CATTLE RUSTLING AND INSECURITY IN ISIOLO COUNTY, NORTHERN FRONTIER AND NORTHERN RIFT REGIONS

and injuries, destruction of homes and infrastructure, displacement of families, and the closure of schools and health facilities. The economy of the county is predominantly anchored on pastoralism and, consequently, the theft of livestock has severely undermined the livelihoods and food security of the affected communities. The petitioners further note that, in the absence of a functional national livestock identification and traceability system, stolen livestock cannot be traced, and as such livestock are moved to other counties where they are sold.

Hon. Members, the petitioners aver that cattle rustling has evolved from a traditional practice into a commercialised and heavily armed criminal enterprise, occasioning loss of livestock on a large scale across the Northern Frontier and North Rift regions. The petitioners claim that the Penal Code treats such acts as ordinary offences of stock theft or robbery, thereby enabling the financiers and organisers of these criminal syndicates to evade the more stringent measures available under the counter-terrorism legal framework. They observe that there is presently no legal framework for the compensation of families who lose their next of kin to such attacks, nor a structured programme for compensation.

Hon. Members, the petitioners invoke Article 189 of the Constitution on cooperation between the national and county governments, and Article 238 on the principles of national security. The petitioners state that, despite raising the matter with the local administration and security agencies, the interventions undertaken have not sufficiently resolved their concerns.

The petitioners, therefore, pray that the National Assembly:

1. 1. Engage the Ministry of Interior and National Administration to strengthen security operations in the affected areas, with a view to establishing a permanent and adequately resourced rapid-response framework for the affected areas; and undertake a comprehensive assessment of the loss of lives, livestock, homes and businesses occasioned by banditry in the affected areas.
2. 2. Amend the Prevention of Terrorism Act, 2012, to classify organised armed banditry and commercialised cattle rustling as acts of terrorism; and enact legislation to establish a Livestock Loss, Traceability, Compensation and Recovery Framework, providing for, among others, the verification of losses, a national financing mechanism, the resolution of inter-county disputes and a National Pastoralist Restocking and Economic Recovery Fund.
3. 3. Recommend an independent investigation and prosecution of public officers suspected of financing, facilitating or concealing banditry.

Hon. Members, having established that the matters raised in the petition are well within the authority of this House, and further, that the said matters are not pending before any court of law, constitutional or legal body, I hereby commit the petition to the Departmental

required to consider the petition and report its findings to the House and to the petitioners in accordance with Standing Order 227(2).

Yes, Hon. Karitho.

before we continue to suffer even greater losses. I support the Petition presented by the residents of Isiolo, and I urge the Government to take this matter seriously.

Thank you, Hon. Speaker.

recommendations in that Report. It was a Select Committee because the terrible vice was happening at that time, and it has continued. May the Committee look into that Report.

PAPERS

1. 1. Legal Notice No. 218 of 2026 relating to the Teachers Service Commission Code of Regulations for Teachers (Amendment) Regulations, 2026, explanatory memorandum and regulatory impact assessment from the Teachers Service Commission.
2. 2. The following draft regulations, explanatory memoranda and matrixes of stakeholder comments from the Ministry of Information, Communications and the Digital Economy–
   1. (a) Draft Kenya Information and Communications (Consumer Protection) Regulations, 2026.

1. (b) Draft Kenya Information and Communications (Interconnection) Regulations, 2026.
2. (c) Draft Kenya Information and Communications (Infrastructure Sharing) Regulations, 2026.
3. (d) Draft Kenya Information and Communications (Fair Competition and Equal Treatment) Regulations, 2026.
4. (e) Draft Kenya Information and Communications (Tariff) Regulations,
   1. 2026.

1. 3. Draft Prevention of Terrorism (Implementation of the United Nations Security Council Resolutions on Prevention, Suppression and Disruption of Proliferation Financing) (Amendment) Regulations, 2026 from the Ministry of Interior and National Administration.
2. 4. Sessional Paper No. 2 of 2026 on the National Care Policy from the Ministry of Gender, Culture and Children Services to be referred to the Departmental

1. 5. Reports of the Auditor-General and financial statements for the year ended 30th June 2026 and the certificates therein in respect of the following–
   1. (a) Council of Legal Education.
   2. (b) Garissa High School.
   3. (c) Garissa University.
   4. (d) Higher Education Loans Board (HELB) Staff Car Loan and Mortgage Scheme.
   5. (e) Higher Education Loans Self Protection Scheme (SLSPS).
   6. (f) Independent Policing Oversight Authority.
   7. (g) Kaiboi National Polytechnic - Narok County.
   8. (h) Kenya Accreditation Service.
   9. (i) Kenya Consumer Protection Committee for 15 months.
   10. (j) Kenya Secondary Education Equity Quality Improvement Project (SEEQIP) Program Grant/Credit; Project ID No: P501648, Credit No. 7642-KE, Grant No. E376-KE- State Department for Basic Education.
   11. (k) Kenya Symbiocity Programme - SIDA No.51110060.
   12. (l) Kenya Towns Sustainable Water Supply and Sanitation Program No. P-KE-E00-011 (AFDB Loan No.2000200000501) - Central Rift Valley Water Works Development Agency.
   13. (m) Kenya Towns Sustainable Water Supply and Sanitation Program No. P-KE-E00-011 (AFDB Loan No.2000200000501)- Central Rift Valley Water Works Development Agency;
   14. (n) Micro Finance Sector Support Credit Project (Credit No. CKE 3004 01E and CKE 6010 01E) - The National Treasury;
   15. (o) Murang’a Technical Training Institute;
   16. (p) National Council for Nomadic Education in Kenya;
   17. (q) National Research Fund;
   18. (r) National Treasury Capacity Strengthening Project (Grant No. 5500155013902 ID No. P-KE-KOO-011) - The National Treasury;
   19. (s) Rural Kenya Financial Inclusion Facility (RK FINFA) (IFAD Loan No. 2000004121 and 2000004122 and Grant No. 20000045154) - The National Treasury;
   20. (t) St. Paul’s High School – Kevote;
   21. (u) Tana and Athi Rivers Development Authority;
   22. (v) Tarbaj Technical and Vocational College; and

1. (w) Warehouse Receipt System Council.

Thank you, Hon. Speaker.

Report of the Committee on Delegated Legislation on its consideration of the

Excise Duty (Remission of Excise Duty) Regulations (Published as Legal Notice No. 193 of 2026). I thank you, Hon. Speaker.

1. (a) The Trade Description (Amendment) Bill (National Assembly Bill No. 42 of 2026); and
2. (b) The Sacco Societies (Amendment) Bill (National Assembly Bill No. 32 of 2025).

NOTICES OF MOTIONS

ADOPTION OF REPORT ON AUDITED ACCOUNTS OF NG-CDF FOR CONSTITUENCIES FOR FYS 2013/2014 TO 2022/2023

APPROVAL OF EXCISE DUTY (REMISSION OF EXCISE DUTY) REGULATIONS

Regulations (Published as Legal Notice No. 193 of 2026) laid on the Table of the House on Tuesday, 3rd November 2026 and pursuant to the provisions of Section 7(3)(a) of the Excise Duty Act (Cap. 472), this House approves Excise Duty (Remission of Excise Duty) Regulations, published as Legal Notice No. 193 of

1. 2026. I thank you, Hon. Speaker.

QUESTIONS AND STATEMENTS

REQUEST FOR STATEMENT UNPAID STIPEND FOR COMMUNITY HEALTH PROMOTERS IN MALAVA

Committee on Health regarding unpaid stipends to the Community Health Promoters (CHPs)

in Malava Constituency.

Community Health Promoters serve as an important link between households and health care facilities. Despite performing essential duties, concerns have been raised regarding persistent delays in payment of stipends due to community health promoters in Malava Constituency. There have been reported cases that payment of stipends to some promoters were discontinued in 2024 without prior notice or explanation, and subsequently reinstated in 2025. The affected promoters have continued to provide essential primary healthcare services despite the delayed and inconsistent payment. The delays and inconsistent payments have caused financial hardship to the affected promoters, undermined their morale and may adversely affect the delivery of primary healthcare services in the constituency.

It is against this background that I request a Statement from the Chairperson of the

Departmental Committee on Health on the following:

1. 1. A report on the total number of community health promoters serving in Malava Constituency indicating the number with outstanding stipends, the amount owed in respect to each community health promoters and the respective periods.
2. 2. The reason for the persistent delays in the payment of stipends to community health promoters in Malava Constituency.
3. 3. A timeline for the payment of all outstanding stipends and an outline of the measures being taken to ensure timely and consistent payment in future.

I thank you.

The Chair, Departmental Committee on Health. Any Member from that Committee? Hon. Julius Sunkuli, when can you bring a response to that? That is straightforward. Can you do it on Thursday this week?

STATEMENT

INCREASED CHARGES FOR BIRTH CERTIFICATES

services, there has been a commensurate increase in the quality of materials used and therefore, the cost of these materials.

On whether public participation was undertaken, it was done during the public participation exercise for the establishment of the unique personal identification (UPI) and the review of the Birth and Death Certificate Act Regulation.

On the second Question on the measures being put by the Government to ensure digitalisation of the civil registration services, I want to state as follows. The Government has ensured that there are multiple access channels in the e-Citizen platform, which allows for multiple channels for access, including the use of Unstructured Supplementary Services Data (USSD) code enabling individuals without smartphones to access services and launch their application. In regard to the civil registration, officers will be prompting clients from the back end to support them in getting services and making payments.

On the third Question on whether steps are taken by the Ministry, currently there are no steps that have been taken to restore the charges to the previous rate on the following account, that the upward revision of fees was based on the facts articulated above.

This is signed by the Principal Secretary for Immigration and Citizen Services, Dr Belio Kipsang.

Thank you.

have the Principal Secretaries appearing before us on Thursday on other issues relating to passports, diplomatic passports and other matters, we can include this as a supplementary issue and invite the concerned Members so that we can deliberate on it that morning.

respective committees to hold Cabinet Secretaries to account. We should only intervene if they have been unable to do so. I know that Cabinet Secretary, Hon. Davis Chirchir is one of the most diligent Cabinet Secretaries serving in this Government. I would, therefore, encourage Hon. GK to follow up on this matter this week. I am certain that, even without necessarily appearing before the Committee, Cabinet Secretaries can sometimes provide written responses. I am sure Davis will give the responses in due course.

MOTION

ADOPTION OF REPORT ON INSPECTION VISITS TO CONSTITUENCIES’ OFFICES IN NAKURU COUNTY

THAT, this House adopts the Report of the Committee on Members’ Services and Facilities on inspection visits to Constituency Offices in Nakuru County, laid on the Table of the House on Thursday, 11th June 2026.

QUESTIONS AND STATEMENTS

STATEMENT

THE JUNE 2026 MONETARY POLICY STATEMENT OF THE CENTRAL BANK OF KENYA

The June 2026 Monetary Policy Statement was issued against a background of heightened global uncertainty, geopolitical tensions in the Middle East, changing international financial conditions and domestic fiscal pressures. These developments have implications for the cost of living, business operating costs, the external position and the overall performance of the Kenyan economy.

I wish to draw the attention of this House to the following key matters arising from the Monetary Policy Statement (MPS) and the subsequent engagement with the Governor of the Central Bank of Kenya. Inflationary Pressures and Conduct of Monetary Policy. The Central Bank of Kenya is mandated to formulate and implement monetary policy aimed at maintaining price stability, with an inflation target of five per cent, subject to a margin of plus or minus 2.5 percentage points on either side.

During the first half of 2026, the Monetary Policy Committee reduced the Central Bank Rates (CBR) from 9 per cent to 8.75 per cent on February 2026, and subsequently maintained the rate in April and June of 2026, considering emerging global uncertainties and potential inflation effects of development in the Middle East. However, the inflation outlook has since become more challenging. Headline inflation increased from 4.5 per cent in December 2025 to

1. 6.4 per cent in June 2026. Following further increase in fuel prices, inflation rose from 6.6 per cent in August 2026 to 6.8 per cent in September 2026, and approximately 7.3 per cent in October 2026, the highest in the last few months. The increase in inflation has largely been driven by higher energy prices, particularly the effects of disruptions in international oil supply arising from geographical tensions and the conflicts in the Middle East. These pressures extend beyond the direct cost of fuel as they are transmitted to transport fees, food production, manufacturing, distribution, and the prices of other essential goods and services. Of particular concern is the effect of sustained increase in international oil prices on the cost of living, household purchasing power and the operating costs of businesses. Higher energy prices could also exert pressure on the exchange rate and foreign exchange reserves through the increased cost of petroleum imports. There is, therefore, need for continued monitoring of both direct and secondary inflation effects, particularly the extent to which higher energy transport costs are transmitted to food prices and other essential commodities. Monetary policy decisions must take account of needs to contain inflation while avoiding unnecessary constraints on productive economic activity. Government interventions aimed at cushioning consumers against the immediate effects of higher fuel prices remain important. However, such interventions need to be assessed alongside their fiscal implications and sustainability, particularly where international energy prices remain elevated.

Hon. Speaker, on the monetary policy transmission and the cost of credit, the Central Bank of Kenya (CBK) has undertaken significant monetary policy easing since August 2024. The CBR was cumulatively reduced by 425 basis points from 13 per cent in August 2024 to

1. 8.75 per cent in February 2026. This reduction was intended to ease monetary conditions, lower the cost of borrowing and stimulate private sector credit investment. During the period under review, private sector credit growth improved from 5.9 per cent in December 2025 to 10.6 per cent in June 2026. Over the same period, the average commercial bank lending rate declined from 14.8 per cent to 14.4 per cent while the average deposit rate declined from 7.1 per cent to
2. 6.8 per cent. It is very important to mention that our commercial bank lending rates are gradually reducing from 14.8 per cent to 14.4 per cent in the period under review. However, the important question remains whether this reduction in the CBR rate has translated sufficiently into lower lending rates and affordable credit for households and businesses. Although lending rates have declined, the average rate of 14.4 per cent remains relatively high for many enterprises, particularly micro, small, and medium enterprises, informal traders and small-scale entrepreneurs. It is, therefore, important that the effectiveness of the monetary

policy easing be assessed, not only in the changes in the CBR, but also the extent to which lower policy rates are transmitted to commercial bank lending rates and improve access to affordable financing.

I also wish to draw attention to the monetary policy transmission framework, particularly the narrowing of the interest rate corridor from 250 basis points to 50 basis points on either side of the CBR, together with the central bank liquidity management operations. These measures are intended to strengthen the alignment of the Kenya Shilling Overnight Interbank Average, which we normally call the KESONIA rate, with the CBR rate and improve the transmission of monetary policy decisions to the money market. Sustained convergence between KESONIA and CBR remains important to the effectiveness of this framework. The CBK should, therefore, continue assessing whether the existing corridor and liquidity management arrangements are sufficiently effective in ensuring the changes in the policy rates are reflected in interbank market conditions and ultimately commercial bank lending rates.

The revised risk-based credit financing model, which became fully operational in March 2026, is also an important development. The model provides for a common reference rate based on CBR or KESONIA for eligible variable rate shillings loans, with additional components reflecting banks' operation costs, required returns and borrower-specific credit risk. It is very important to note that, for the first time, we have had this initiative by reducing their basis points from 450 to 50, therefore, reducing that corridor. This has equalised the KESONIA and the CBR rate.

Consequently, you now see its effectiveness is the implementation of the revised risk- based credit financing model. That means we will use four main rates in the calculation of interest rates for commercial loans, which is the banks' operating costs, the required returns and the borrower-specific credit risk. This, therefore, means that when you borrow a loan, the interest rate should be based on your risk portfolio and not a flat rate that was used before thanks to the measures put in place by CBK to have convergence of KESONIA and CBR rate and further, the implementation of the revised risk-based credit financing model. The model must be applied consistently and transparently across commercial banks. Borrower-specific risk premiums should be determined fairly and transparently without unduly disadvantaging Micro, Small and Medium Enterprises (MSMEs), informal businesses and borrowers with limited credit history. Its effectiveness should be assessed by its actual impact on the cost of credits and not merely by its operational implementation.

The Committee further notes that there is need for Central Bank's engagement with the Kenya Bank Association on the development of an electronic collateral registry. Such an arrangement could make it easier and less costly for borrowers to transfer or use collateral between financing institutions, therefore addressing some of the barriers that prevent viable businesses from accessing financing. With the implementation of electronic collateral registry, it will be possible for you to use your collateral for a loan and look at the pricing of different interests across different commercial banks. With the electronic registry, when you find a better rate in a different bank, it will be possible to transfer your security from one bank to another without any cost whatsoever, therefore, ensuring there is competitiveness.

As of June 2026, credit to agriculture grew by 35.1 per cent, trade grew by 22.6 per cent, building and construction by 29 per cent, and finance and insurance by 34.2 per cent. In contrast though, credit to manufacturing contracted by 5.4 per cent, transport and communication by 1.8 per cent and real estate by 1.4 per cent. But key to note is that, for the first time, we have seen a phenomenal growth on access to credit to agriculture at 35.1 per cent. This means our journey to self-reliance and production of food as a country is on the right course. This difference raises important questions about the distribution of credit and the financing conditions facing sectors that are central to production, infrastructure development, employment, and investment. In particular, the contraction in manufacturing credit requires attention, given the sector's contribution to industrialisation, value addition, export development and job creation. We are looking forward to the implementation of the county aggregation centres across the country that we think will change these numbers towards an increase in manufacturing and, therefore, growth in that particular sector as a percentage of GDP. There is a need to continue the assessment of sectoral credit trends, with particular attention to manufacturing, agriculture, transport and other sectors whose financing needs are critical to economic transformation.

Key to note, we also recognise the role of the Credit Guarantee Scheme in addressing collateral constraints among MSMEs. As at June 2026, loans amounting to Ksh6.8 billion had been disbursed through seven participating banks. The Scheme remains an important instrument for supporting enterprises that may otherwise be unable to secure commercial financing. Its effectiveness should, however, be assessed in terms of the number and type of businesses benefiting, the distribution of financing across sectors, the repayment performance of guaranteed loans and the extent to which the facility supports business continuity, investment and employment.

On the banking sector stability, non-performing loans and capital requirements, the stability of the banking sector remains fundamental to the effective implementation of monetary policy and the availability of credit to the private sector. As at June 2026, the banking sector recorded a liquidity ratio of 61.2 per cent against the statutory minimum of 20 per cent, while the capital adequacy ratio stood at 20.0 per cent against the minimum requirement of

1. 14.5 per cent. These indicators reflect the sector’s capacity to meet its obligations and absorb potential financial shocks. The ratio of gross non-performing loans to gross loans declined from 15.4 per cent in December 2025 to 14.8 per cent in June 2026, with a further improvement to approximately
2. 13.9 per cent by September 2026, according to the update provided by the Governor. It is important that this House notes that our non-performing loans across all banks have declined from 15.4 per cent to 14.8 per cent. This decline serves as proof of the resilience of our economy. There are particular credit risks in trade, agriculture, energy and water, where changes in input costs, supply-chain disruptions and market conditions can affect borrowers’ repayment capacity. We are, therefore, asking for more investment in these sectors to ensure there is access to credit to these otherwise non-financed areas. The revised minimum core capital requirements for commercial banks also requires attention. The requirements provide for a phased increase from Ksh1 billion to Ksh10 billion over a five-year period. The minimum requirement is Ksh3.4 billion for 2025, rising to Ksh5 billion in 2026 and ultimately Ksh10 billion by 2029. While consolidation may strengthen individual institutions, it is important to safeguard competition, local ownership and the continued participation of domestic banking institutions. The biggest debate here is that if we increase the core capital requirement for banks, we will necessitate the consolidation or merging of some banks. We have noticed that most of the banks that are seeking to merge with or buy out those that do not meet the minimum requirements are

foreign banks. Therefore, the question arises: should we prioritise having our banking institutions owned by local investors, or foreign-owned, or should we focus on having a strong financial system with banks that have robust capital requirements, demonstrating their resilience to handle specific shocks?

On foreign exchange reserves, balance of payments and external sector vulnerabilities, the external position remains an important consideration in the conduct of monetary policy, particularly given Kenya’s dependence on imported petroleum products, capital goods, intermediate inputs and other essential commodities. As at June 2026, foreign exchange reserves stood at US$14.023 billion, equivalent to 5.8 months of import cover, the highest ever in recent years. During the subsequent engagement, the Governor provided an update indicating that reserves had increased to approximately US$14.7 billion, equivalent to 5.9 months of import cover, a great contrast to less than one month of import cover as at the same period in 2022.

The projected balance of payments surplus of approximately US$1 billion in 2027 therefore requires scrutiny. Its sustainability will depend on the extent to which recurring sources of foreign exchange, including exports, diaspora remittances, foreign direct investment, tourism receipts and external financing, can support the country’s external financing requirements.

markets and strengthen support for Kenyans living and working abroad. Towards the tail end, on virtual assets and stablecoins, this is a big opportunity for us as an economy. However, it is important that we approach this space with caution, ensuring we do not discourage these investments. We are already falling behind on these investments in our country.

Regarding artificial intelligence and the emerging risks in the financial sector, we have observed that AI serves as a vital tool for business operations, customer support, and marketing. Nonetheless, it remains a big risk. Therefore, we encourage all players in this sector to invest heavily in controlling the use of AI, even as we look forward to enacting legislation that will guide investment in that area.

Hon. Speaker, as I conclude, I would like to reference the report shared by the Central Bank of Kenya, which demonstrates that Kenya is resilient to external shocks. The few issues we face are within a manageable range. Furthermore, confidence in Kenya has been cited by authorities such as the International Monetary Fund (IMF) and the World Bank Economic Outlook, which indicate that Kenya remains resilient. We are on the right trajectory, growing towards becoming a first-world country. For all of us who are willing and ready to invest here, let us continue to do so.

We have seen that some individuals are ready to leave our country next year for other destinations due to a lack of belief in our nation. I urge them not to pose that risk to other Kenyans. Many of us do not have the United States of America as a fall-back; our homes are here in Kenya. We have invested here, we are vested here, and we believe in Kenya. Do not make utterances that could disadvantage our economy.

Lastly, one of the key findings, is related to our Gross Domestic Product growth. If we examine our GDP growth from 2002 to 2026, we see that it grows and then dips as we approach election periods. The same happened during President Mwai Kibaki’s administration in 2007, when we grew at a negative rate. After the elections, the economy improved until 2013, then it fell to 1 per cent. We also witnessed a similar trend in 2013, 2017 and 2022.

I urge the political class, as we approach the next election, to remember that Kenya is bigger than all of us. Let us maintain the strong economic growth we have achieved. In our utterances, our speeches and the manner in which we conduct ourselves, let us exude confidence in our economy. We have a country to run, a country to protect and, most importantly, a country that we will continue to occupy even after the elections.

I beg to submit, Hon. Speaker.

Next Order.

MOTION

ADOPTION OF 16TH REPORT ON AUDITED ACCOUNTS OF NG-CDF BOARD AND NG-CDF FOR FYS 2022/2023 TO 2024/2025

[The Deputy Speaker (Hon. Gladys Boss) in the Chair] Secondly, on long-outstanding payments on completed projects, the Committee observed that, in the Financial Year 2023/2024, completed projects had long-outstanding payments amounting to Ksh129 million, exposing the Board to the risk of accrued interest and penalties. The Committee recommended that the Accounting Officer ensures that payments to contractors are processed within the period stipulated in the respective contracts, upon certification of the works by the relevant supervising consultants.

Thirdly, the issue of employing persons with disabilities arose. The Committee observed that, in the Financial Year 2024/2025, the Board had nine employees with disabilities out of a workforce of 456, representing approximately 2 per cent against the statutory minimum of 5 per cent under the Persons with Disabilities Act, 2025.

The Committee recommended that the Accounting Officer adopts and implements a time-bound plan to attain the statutory threshold, including accessible and targeted recruitment, the provision of reasonable accommodation, and annual reports on progress in the Board's financial statements about persons with disabilities.

The NG-CDF remains one of the nation's most visible instruments of grassroots development. Its mandate can be fully realised only when guided by the constitutional principles of openness, accountability, and prudent and responsible use of public resources under Article 201 of the Constitution, which our Committee is mandated to safeguard. The NG-CDF is the only Fund where, if you fly over Kenya, you see icons of development in every village, unlike other funds.

Allow me to commend the NG-CDF Board for its ongoing automation of systems, the expedited approval of projects and the continuous issuance of funding updates through SMS alerts to Members of this House. These measures have enhanced efficiency, transparency and accountability in the management of the Fund, and the Committee urges the Board to sustain and consolidate these gains.

Allow me to take this opportunity to thank your office, the Office of the Clerk, the Auditor-General, the National Treasury and the Office of the CEO of the NG-CDF Board for the support extended to this Committee. I also wish to thank the Members of my Committee and the Secretariat for their deliberations and dedication in preparing this Report.

I beg to move and request Hon. Caroline Ng’elechei to second. Thank you.

Thank you, Hon. Deputy Speaker.

Hon. Deputy Speaker, as I was saying, the challenge we face is that NG-CDF is a centralised fund. The funds that go to our governors are decentralised. Decentralisation and devolution are actually sisters. But if you look at the work being done by NG-CDF vis-à-vis the decentralised funds, NG-CDF has a lot more impact. If you see many posts about the work being done in Kiambu County by the area governor, you ask yourself whether other governors get the same amount of money.

I wish there were an independent body that could assess the work done through devolution and by NG-CDF so that we know what the problem is. I wish that, when we were

devolving these funds, the issue of health had remained at the national level. I never thought that I would say this because I opposed this idea when we were coming up with the Constitution. Many of our women die while giving birth because of inefficient health systems through devolution. So, I wish we had not devolved healthcare.

I would also like to say something that Hon. Ng’elechei raised when she seconded this Report. She said that Members of Parliament should be considerate. When they go to a school with no laboratory, yet people want school buses, Members should build a laboratory instead of buying a school bus. First, we should note that Members of Parliament do not make these decisions, but I wish we did, because parliamentarians need to be in charge.

Second, this is what public participation is all about. There is nothing more popular than school buses. I remember one of my opponents was with me at a function, and he criticised me by telling people that Hon. Millie was only bringing a school bus. I immediately engaged the public by asking whether they wanted a class or a school bus. Everybody wanted school buses. I wish we had more money to give every school a bus because buses are a necessity, not just for the school but also for the surrounding communities.

My current thesis challenges the concept of separation of powers. The concept of separation of powers was developed sometime in the 16th or 17th century. Very well- intentioned, but as some of our lawyers understand it, we focus more on the classical separation of powers, which is a bit more limiting. I suppose you see how it has evolved, especially the challenges we face in Africa with ethnicisation that often leads to marginalisation and disproportionate allocation of resources based on political orientation, such that a President allocates more money to certain areas and neglects others. That is why the current President has been pushing the agenda of equality. This is an issue that Kenyans have been crying about: equality and equity. Equity speaks to bringing up to speed areas that have lagged in the past.

Hon. Deputy Speaker, on that, I strongly agree with the President on the need to equalise the resource base for every part of the country. I hope that when we finally assess and amend the Constitution, we consider increasing the amount of money allocated to NG-CDF and giving Members of Parliament a direct role. This will ensure that we do not tiptoe behind other leaders. The Bible is the only book I fear, and I would only stop if it directed otherwise. Nothing in the Bible prohibits Members of Parliament from performing perceived executive roles. If we are seen as performing executive roles and doing it well by changing the faces of the areas we come from, then we should use that as an example for other parts.

I have spoken to other countries, including Malawi and Ghana, as well as other jurisdictions such as Zambia, which we borrowed from, and they acknowledge that the NG- CDF, as designed by Kenya, is a better strategy. Therefore, I urge that, as a country, we should not kill what is working. Let us retain what is working and let devolution borrow from the NG- CDF model.

Three different entities audit the NG-CDF. There should be thorough audits, and other structures should borrow from the structures obtained under the NG-CDF. This will enable us to have health facilities and early childhood development (ECD) centres in virtually every village, instead of people boasting to us about having one or two eye centres in a ward. If you consider that most constituencies receive Ksh1 billion annually from county resources, and if that amount were properly utilised, we should by now be at the level of Singapore, simply through devolved funds.

With those few remarks, I support.

work done by the NG-CDF from Moyale to Lunga Lunga. Having visited different parts of the country and appreciated the work undertaken through the NG-CDF, we have realised that it is the best model of implementing Government-funded projects in this country.

Firstly, once funds are released to the constituencies managed by the fund managers, the Project Management Committees (PMC) established for the respective projects implement them. Therefore, the responsibility for implementing the projects lies not with the fund manager, but with the communities themselves, who have been selected to oversee them. This is the best approach, as it allows the community to own the projects once they are implemented and completed.

Secondly, we have seen how the NG-CDF has uplifted areas that had been left behind, particularly schools, security and the environment. It has also facilitated the provision of water tanks to schools and Government institutions. Consequently, every part of this country looks good because the NG-CDF has uplifted the areas. During the 12th Parliament, we tried to increase the allocation from 2.5 per cent to 4 per cent or 5 per cent. However, after completing our report, the Government did not agree with our proposal. Had we managed to increase it to a more viable amount, this country would have been transformed through the NG-CDF model because it is the best.

Once a project is awarded through the NG-CDF, it rarely stalls because it is awarded only after funds are made available to the PMC in the institution where the project is being undertaken. This is the best model in this country, and it should be duplicated in other institutions and Government entities to enable us to implement as many projects as possible. On bursary allocation, the Committee increased the allocation from 35 per cent to 40 per cent. This increased the amount available and enabled us to cater to as many students as possible.

In addition, during the 12th Parliament, our Committee reviewed the formula for sharing the NG-CDF allocation. Previously, all constituencies received the same amount, yet some had only four secondary and primary schools, while others had more than 300 schools. We, therefore, had to revise the allocation weights to ensure that constituencies with more wards received a higher allocation. That was the best thing that has ever happened to the NG-CDF.

I, therefore, stand to support and affirm that the NG-CDF has transformed this country. We will go places because of this. Other countries come here to learn. Uganda visited us during the 12th Parliament to learn about what we have done with the NG-CDF. Other jurisdictions have also visited to learn what we do. Recently, we visited Zambia and explained how our model works. They indicated that they had started earlier, but Kenya had since overtaken them. The NG-CDF should continue. County governments sometimes envy Members of Parliament because of the projects we have undertaken through utilisation of the NG-CDF, which have overtaken them. Nevertheless, we will continue doing our best. I support this Report because it will help us ensure greater transparency.

Finally, I wish to thank the NG-CDF Board. They are currently performing very well. The CEO is young and is doing an excellent job. The Board is also keeping us updated, so that we know where we are at all times.

Thank you. I support.

I want to congratulate the Board for the excellent work it is doing. I also congratulate it on obtaining an unqualified audit opinion from the Auditor-General. That means the audit identified no unresolved concerns and that any issues raised were adequately addressed, leaving no outstanding concerns about the Board's management of public funds. That is an excellent achievement considering that public funds are often wasted and lost in some of our Government agencies. Most constituency audits conducted by the same Auditor-General also raise many queries, sometimes relating to bursaries. I have said this before, but I want to repeat it: some of these queries are really unfair. When the Auditor-General implies that, out of more than 10,000 students awarded bursaries, there is no evidence of how the money was spent, I am surprised. Members will appreciate that the committees identify the beneficiaries, who are then given cheques payable to their respective institutions. It is almost impossible to follow up and produce 10,000 receipts for submission to the Auditor-General to prove the payments.

In my opinion, some of these audit queries appear to be politically motivated. I am happy that the Board, unlike the NG-CDF itself, is not a political entity and has obtained an unqualified audit opinion from the Auditor-General. There are also times queries concerning projects and their valuation arise. I want to point out that the committees that manage the NG- CDF in the constituencies are not technical personnel or experts. They rely on expert support to value projects. The Board approves the projects based on the valuations and its technical expertise.

Some audit queries affecting constituencies could be reduced if the Board ensured it checked the amount allocated to each project and confirmed that the allocation was appropriate for the project. I also remember receiving an audit query stating that there was no value for money in constructing a police post. That was surprising because during public participation, the public had expressed the need for a police post. The NG-CDF Board subsequently decided to construct a police post known as Kadhalani. It took 10 years for police officers to be posted there. Every year, an audit query indicated that the project wasted funds.

Unfortunately, the Board, or rather the committee, was not in a position to deploy officers to man the police post. The only thing it could do was to construct the facility. We need to consider these issues so that, in future audits, we avoid politicising audit queries. The NG-CDF has been disbursing funds to constituencies regularly. This time, the disbursements are made every month. Without fail, some money is sent to the constituencies every month.

However, there is a concern when you consider, for example, the amount required for bursaries. Constituencies may require up to Ksh80 million for bursaries, based on their 40 per cent allocation from the total kitty. However, this would require consolidating funds allocated and disbursed to constituencies over four, five, or six months. Unfortunately, the same Board will question you for not utilising your funds if you do not spend the money disbursed to you. However, you cannot spend Ksh80 million when you have only received Ksh17 million. Sometimes, it is also risky to begin disbursing bursaries when the available funds are insufficient because of the public outcry that may arise.

The Board needs to understand that sometimes if a constituency wants to issue bursaries amounting to approximately Ksh40 million, it may need to wait for two-and-a-half months to accumulate sufficient funds. The Board should understand that a constituency may want to issue bursaries in January. The money received in November, December and January may be the amount required for the bursary exercise. If the constituency cannot retain the money, or if it will not receive additional funds when it fails to spend what it has received, how will it accumulate enough money at once to award bursaries?

Previously, the money came in quarterly disbursements. That meant that approximately Ksh50 million could be disbursed at once. Currently, a constituency receives about Ksh17 million, give or take Ksh20 million. This makes the situation a bit complicated. The Board needs to understand that failure to spend the money immediately does not necessarily mean

that a constituency is unwilling to utilise its allocation. Sometimes, it is necessary to ensure that sufficient funds are available for an activity so that it can be undertaken properly.

Finally, I want to say that NG-CDF projects have transformed this country's infrastructure, particularly in schools and security installations. Our country now has many standard classrooms, schools with laboratories and schools with functioning toilets, facilities that were not available in the past. Parents used to conduct Harambees and regularly raise funds to provide basic facilities, such as toilets, even when the rains came. Today, Kenyan parents can relax, knowing that, through the emergency funds and the NG-CDF kitty, such infrastructure can be provided for them and their children.

Thank you for the opportunity. I want to reiterate my support for the Committee’s report.

I am particularly excited to be a Member of this Committee. Usually, self-praise is unworthy, but it is important to note that this is the first Decentralised Funds Accounts Committee to have gone through all audit reports since 2013 and is now up to date. I must celebrate the Chair of the Committee for burning the midnight oil and wearing our rare parts to ensure we leave no report, constituency, or region unaccounted for in reviewing audit reports from the various constituencies. Interaction with the audit reports has capacitated our fund managers to have a global view in the management of this Fund, just as much as it has also given a panoramic view to auditors who have ordinarily been fault-finding and looking for an acknowledgement receipt of a cheque that has been sent hundreds of kilometres away.

Audit is now purposeful. It reviews the system as it works and recommends how best to improve management of the NG-CDF to give Kenyans the maximum return. For this reason, we must also laud the Office of the Auditor-General for being extremely timeous in ensuring that annual audits are conducted within required statutory times and tabled before this House, enabling us to ensure that every shilling is accounted for to the taxpayer.

Finally, I cannot help but celebrate PMCs across the country. They have shown strong managerial skills in ensuring that funds for the various projects under their care are applied for their intended purpose and that we get value for money. I must also acknowledge our constituents for their robust public participation and for prioritising where their NG-CDF should be applied. I am a beneficiary and that is why schools that were not being considered for buses are now getting brand-new buses, not recycled buses as may have been the case before. More importantly, bursaries have empowered children from poor families who were dropping out of school to progress through every level of education. It is one of the most celebrated aspects of this NG-CDF.

I want to encourage the 14th Parliament that let us enhance it if it is working. I challenge the 14th Parliament to increase the percentage of national Government money put under the NG-CDF. If two or so per cent of the national Government money can perform such miracles in every constituency in this Republic, it had better be increased to a two-digit percentage so that we change Kenya and get to Singapore earlier than our vision is telling us.

I thank you, Hon. Deputy Speaker. I beg to support.

The Report also shows that the Fund has only employed 2 per cent of people living with disabilities. I believe the Board should do more to improve representation and opportunities for people with disabilities. The Board should also communicate with the Association of Persons Living with Disabilities so that they can give them qualified people for certain jobs in the constituency.

Hon. Deputy Speaker, I want to thank the Principal Secretary, Mr Kiptoo, and the Cabinet Secretary, Hon. Mbadi, for making sure that every month money is disbursed to the NG-CDF. A lot of work is going on because of their action. The current team in the National Treasury has done marvellous work for NG-CDF. I encourage them to continue to give us money so that we can implement projects.

I also wish to commend the new NG-CDF CEO, Mr Magut, who used to be our Clerk in the Departmental Committee on Finance and National Planning. He has done very well. Every month, he ensures that he disseminates information. I went to see him the other day and I learnt that they are developing a computer system where you can access every constituency activity funded by NG-CDF. That is the kind of leadership we want. I also encourage them to adopt Artificial Intelligence (AI). Two or three weeks ago, I was in Bangkok, Thailand, on IMF and World Bank talks. Everything that was discussed there was how to use AI to improve efficiency, improve tax collection and disseminate information. That is the direction we need to move.

Hon. Deputy Speaker, with those few remarks, I support. Thank you very much.

I also wish to commend the current CEO who has turned around NG-CDF in terms of how ICT is responsive to needs of users. Hon. Speaker and Members of Parliament always get updates whenever funds are released. They get an update on any questions they have asked about the utilisation of funds, which was an issue a few months ago.

When the constituencies county committees send their proposals, they are acted upon within a very short time. Any issues that are raised about provisions of or inability by the Board, they get attention of the fund manager and the chairman sometimes. This is demonstration of a very qualified and industrious, and more importantly, a visionary and forward-looking CEO.

Let us look at what NG-CDF has done in purchase of land for construction of security infrastructure. In my constituency, I have been able to construct about four police stations, purchased land for construction of the Ethics and Anti-Corruption Commission offices, chiefs’ offices and more importantly made sure they have furniture. This is something that could not be done without NG-CDF. Communities cannot afford to conductHarambees and cannot afford to sell their property. The Government must make sure it is the service provider. The Fund has even done more on infrastructure in comparison with the mainstream Government State Department of education, and interior among others.

In some instances, even construction of teacher training colleges is done by the Fund. I have seen several Kenya Medical Training Colleges constructed by the Fund reflecting how NG-CDF has performed in this country. Before the devolution of healthcare and water services to county governments in 2013, we had managed to implement several water projects in our constituencies and bring piped water into homes through the NG-CDF. In several instances, when the courts and some individuals wanted to scrap the Fund, families, communities and everyone across the country were up in arms alongside the Government. The NG-CDF should be retained as it touches every aspect of life in our society, including families and helping to implement water and road projects. Some roads in my constituency were impassable before 2014, but were subsequently constructed using the NG-CDF. Therefore, the NG-CDF is a good initiative that has been felt all over the country.

The Fund should be strengthened and improved. I laud the Chairman of the Decentralised Funds Accounts Committee for a job well done. He has ensured that proper audit has been done and a report tabled before the House. That is a demonstration of good work. The people of Mwingi should elect him for another term because of his abilities, oversight and more importantly, making the NG-CDF work.

I support the Motion.

in the Judiciary, which is starting to wake up to the reality that the NG-CDF is not a fund for Members of Parliament, who have very little sway, if any, over what happens to the NG-CDF in their constituencies. This Parliament, through the rule of law, has separated a Member of Parliament from the NG-CDF. The community makes decisions on what developments it needs, prioritises them and accounts for them. Eventually, Parliament lobbies for monies for the constituencies, not for Members of Parliament. Members of Parliament play a very small role, if any, beyond pushing for funds to go to the constituencies. We commend this Committee and remind ourselves that decentralisation is a big win for the country and Kenyans at large.

The decentralised funds allocated to the NG-CDF are very minimal compared to our country’s national budget. We devolve more funds to the counties. What shall we do with the money allocated to counties under the supervision of governors? Governors are the chief executive officers of counties. Nairobi City County receives billions every year in the budget. In Dagoretti South Constituency, the work of the NG-CDF is evident, as opposed to the equitable share allocation in counties. As a country, we should discuss whether the money allocated to counties should be a conditional grant so as to make it as impactful as the NG- CDF. We should have that conversation as Parliament, which should wake up to the reality that the current devolution model in our counties is not working, especially the utilisation of development funds. The best proposal would be to convert county allocations into conditional grants, just like the NG-CDF.

The impact of this Committee's work may not be celebrated enough, but the reports clearly demonstrate that Kenya is currently experiencing unprecedented development. Looking at my home constituency of Dagoretti South, when I was elected, our primary schools were in such a dilapidated state that they had even been condemned as unfit for human occupation. In the last eight years, not only have we reconditioned all our primary schools to a good state, but we have also built new schools. Once we improved the condition of all our primary and secondary schools to a habitable state, we were able to construct not less than seven new schools through the NG-CDF. They have been built from scratch, from laying the first block to the admission of students.

Hon. Deputy Speaker, these are not to be seen as structures or monuments but these new schools must be seen as properties of the people of Dagoretti that are giving education to that child who could not have got education otherwise, or would have had no place in the already existing schools. Such a child now has an opportunity to go to Kagira Secondary School, to Mukarara Secondary, to Mutuini Girls, to Riruta Satellite New School, to the Ndurarua New School or to the new amazing centre of learning, Lenana Primary School. That is the first ward that did not have a primary school and now has more than 4,000 learners, Hon. Deputy Speaker, who would otherwise have had to look elsewhere for a place to attend school.

When I look at Dagoretti South Constituency, I am seeing Riruta Satellite Police Station, an ultra-modern police station constructed by the NG-CDF and that is the case for the new Waithaka Police Station. It is also the case for the smaller stations that we have put up across the constituencies that may not be as big as Waithaka Police Station or Riruta Police Station, but as police posts. The small police posts are offering security in areas where there could not have been security. So, our thought going forward, should be to think of how to expand the mandate of NG-CDF, because it is working as a decentralised Fund. This is because, where the Constitution was able to devolve to a certain level, NG-CDF is able to go further into our communities and offer the services that are not even being offered by the counties.

Hon. Deputy Speaker, I stand to commend this Committee and commend the Chairperson for bringing such an amazing Report to the House and that is the only reason we stayed here so that we can support you, the Chairperson, because of the good work that you are doing in that Committee.

Thank you, Hon. Deputy Speaker.

legislation in the National Assembly, believe you me, today, there is clarity and a difference like day and night, in what NG-CDF is doing and what county governments are doing. County governments have abdicated their responsibility and changed to be at the den of corruption, crime and of people enriching themselves. Unlike NG-CDF that is fully owned by members of public, it is something we have to borrow from, even in future when we are going to look at further legislation or amendments, so that we customise the law pertaining to devolution and ensure that Kenyans and tax payers are able to participate well in project identification and project management.

[The Deputy Speaker (Hon. Gladys Boss) left the Chair] [The Temporary Speaker (Hon. Martha Wangari) in the Chair] Hon. Temporary Speaker, as I say this, I have listened to many Members give accolades to the current National Government, Constituencies Development Fund Board, so to say and we appreciate them. This is not to mean that the previous Board was not doing their work, but the current Board has tremendously improved the management of this Fund, in terms of information dissemination. Nowadays Members will appreciate that the moment Funds are processed by the National Treasury, the Exchequer is released and Funds are moved to constituencies. Members of Parliament are brought on board. In addition to that, when the project proposal is approved by the Board, they have decentralised committees to look at their regional level, so that constituencies would go and approve or support and defend their proposals. They are approved at the local area, where the NG-CDF committees are able to participate at that point.

I appreciate the Chief Executive Officer. As we speak, yesterday Monday 2nd November, the Acting Chief Executive Officer of the NG-CDF was visiting my constituency, Kesses, to address the challenges that have been there over time; a project that has stalled due to poor management, procurement challenges and inadequate project management. The project had stalled for quite some time and it had become a big issue. He personally visited the NG- CDF offices in Kesses where he engaged the management, staff and directors of the Board to understand and address the challenges affecting the project. I am happy to report to the people of Kesses Constituency that the CEO has managed to unravelled the underlying problems and has already initiated measures to resolve them. The stalled project is expected to be completed within the shortest time possible so that services can be offered to the people.

The visit was not limited to Kesses Constituency. He also visited Khwisero, Saboti and several other constituencies where similar challenges had been reported. We are beginning to witness a turnaround in the management of this Fund. This demonstrates a high level of commitment. It is unfortunate that I will not sit tomorrow in the interview panel when they will be looking for a substantive CEO but I hope that the ongoing recruitment of a substantive CEO will take into account the progress being made under the current acting CEO. However, I urge the relevant authorities to consider the progress already achieved under his leadership and give him an opportunity to continue serving. We are witnessing a lot transformation, increased transparency and a renewed commitment to service delivery.

Hon. Temporary Speaker, I also wish to commend the decentralisation of critical services. Regional offices that had already been provided for in the management tool, staff establishment and previous proposals are now becoming operational. As we speak, the Eldoret Regional Office is fully operational with staff already deployed. Programme officers are also available. I am informed that within the next two weeks, auditors will also be deployed to the regional offices to support the management and oversee the Fund at the constituency level.

What I only want to call on the challenges is for the Board to increase training of staff. We are having a challenge on our committees that end up being selected by virtue of the law and how they are going to manage. There are still a lot of disparities between the fund managers and the committees. I want to call out the rogue fund managers and I know Members will agree with me. We have experienced rogue fund managers who end up misusing the Fund and misadvising the committee. This causes many challenges. I ask the Board and the current management to ensure that they make decisive administrative procedures to deal with the rogue fund managers and have managers who are going to manage this Fund for the good of the people.

Thank you very much. I support this.

The NG-CDF has also enabled us, as a community, to transform more than 30 per cent of our learning units into academies. In the process of ‘academisation’, more than 60 per cent of them are operational. This means that they have already progressed beyond the 50 per cent mark. We also have a few that are still works in progress, particularly those that were initially at a very low level. In this case, we are able to plan and implement projects because the Fund is reliable, and it will still be available next time.

The NG-CDF has also enabled us to contain insecurity. I would like to be very specific on the issue of insecurity, especially in areas where we experience cattle rustling in the northern part of our constituency, bordering Isiolo County. We have challenges. This Fund has enabled us to put up police stations. We request the Government to convert them into Forward Operating Bases (FOBs) and operational units where we shall have all the forces, including the General Service Unit (GSU), the Rapid Deployment Unit (RDU) and the Anti-Stock Theft Unit (ASTU) so that we can contain cattle rustling. This is possible because we can request NG- CDF Board to approve a project for a police station and then request the National Police Service to provide FOBs which will help us.

The periodic visits by the Committee to different parts of this country and constituencies are important because they help to awaken those constituencies to the realities of the day. The Committee has experience from other constituencies and is able to share those experiences. The visits also help to improve resource utilisation. They provide an opportunity for enlightenment and feedback. Committee Members engage with other constituencies, understand exactly what happens there and share experiences from other areas. It is important, therefore, to emphasise that we need to improve on this, intensify these visits and increase their frequency so that we can cover all the constituencies within a parliamentary session. That way, we shall discuss the performance of different constituencies.

Hon. Temporary Speaker, I wish we could introduce competition based on the starting point and end point. We could have weighted averages, with the units of analysis designed in such a way that it becomes possible to know the progress made and quantify the rate at which that progress has been achieved. It would then be possible to award prizes, where it is possible.

The provisions within the NG-CDF are flexible. Although there are definitions provided for in the law, it is possible to negotiate with the Board. I am one of the Members of Parliament who initially negotiated with the NG-CDF Board to allow funds from the NG-CDF to be used to sink boreholes in our schools. This was because we realised that one of the problems we faced was access to water. Children used to walk many kilometres to fetch water which wasted a lot of time. Through this initiative, we have sunk 56 boreholes within my Constituency. This has reduced the distance from schools to water points to less than two kilometres. That is not the only area that one can negotiate with the Board. It is possible to negotiate for the requisite flexibility to address the level of development needs within a particular locality or constituency.

Hon. Temporary Speaker, it has enabled improvement in learning infrastructure. The learning infrastructure or our learning environment does not only mean the classrooms. It also has to do with the environment itself. Climate change mitigation enables us to buy seedlings and distribute them free to schools. We have created wood lots in schools which have moderated the learning environment in terms of improving air purity that circulates within this learning environment.

It has also enabled most of the constituencies to construct or support the Government in the implementation of the Competence Based Education by putting up laboratories. It has also enabled us improve the quality and standards of service from the national Government officials. Chiefs and assistant chiefs never used to have offices. We are doing excellent offices for them, and we are also furnishings them so that they have a good and secure working environment where they keep their business tools.

Bursaries have been enhanced from 35 per cent to 40 per cent. This is a boost to the community. Where it has effectively been used, it has led to improved performance. If I may pick my constituency as one of them and look at the transition to the university as one of the outcomes of this, we were doing only 5 per cent transition from secondary school to university. Today, we are doing 26 per cent as per 2025 Kenya Certificate of Secondary Examination (KCSE). This shows a huge improvement of more than 21 per cent, which is in tandem with the national average, which last year was 25 per cent and this year is 27 per cent. This is the best form of equalisation fund. It is important for us to borrow a leaf from this Fund and inform the Equalisation Fund. Inspections speak louder and ensure that the Fund is utilised effectively. This is why it exonerates blame from the members of...

kusaidia katika ujenzi wa barabara. KeRRA pekee haiwezi kukamilisha ujenzi wa barabara zote, hasa katika maeneo ambako tunahitaji kuanza ujenzi kutoka mwanzo, badala ya kufanya ukarabati katika miji pekee. Kwa hivyo, tunaomba fedha za kutosha zitengwe ili maeneo yote yaweze kupiga hatua za maendeleo kwa pamoja.

Pia, tunaomba tupewe nafasi, ikiwezekana, ya kuwasaidia watoto wetu kwa sababu umaskini ni mkubwa. Katika baadhi ya maeneo bunge kama langu, umaskini umekithiri. Tunaomba turuhusiwe kutumia fedha hizi kununulia wanafunzi chakula ili wasome bila kuhisi njaa. Tumejenga shule bora, lakini ni muhimu pia tuwe na uwezo wa kuwapatia wanafunzi chakula wanapokuwa shuleni. Tunaomba Bodi ya NG-CDF izingatie pia suala hili.

Pia, nimpongeze Mkurugenzi wa Hazina hii kwa sababu hutupatia taarifa kuhusu kila kinachoendelea. Kwa hivyo, hatuna wasiwasi. Hapo awali, nililazimika kwenda katika ofisi za hazina mara kwa mara ili kujua kinachoendelea na mipango iliyopo. Siku hizi sihitaji tena kufanya hivyo kwa sababu taarifa zote zinapatikana kupitia mtandao. Ninaweza kujua kiasi cha fedha kilichotengwa na mipango iliyopo. Nampongeza sana kwa kujitolea kwake katika kuhakikisha kuwa taarifa hizo zinapatikana. Jitihada zake zina manufaa makubwa kwa wananchi tunaowahudumia, na naamini pia zitapata baraka za Mungu.

Nikihitimisha, kwa sababu ninaona wengi wanasubiri kuchangia, nirudie kumshukuru Mhe. Rais kwa kuhakikisha kuwa fedha za Serikali ya Kitaifa zinafika mashinani na kutumika kutekeleza majukumu yaliyokusudiwa. Hata hivyo, nasisitiza kuwa fedha hizo ziongezwe zaidi ili tuweze kuinua hali ya uchumi wa wananchi wetu. Ukiangalia maeneo yetu, yale yana giza kwa kukosa streetlights, tunaambiwa siyo kazi yetu. Tunaambiwa kuwa jukumu hilo ni la serikali za ugatuzi. Kwa hivyo, ninaomba turuhusiwe kutumia fedha hizi kuweka angalau taa za usalama ili wananchi waweze kuishi katika mazingira salama.

Kwa hayo mengi, naipongeza Kamati na Mwenyekiti wake kwa Ripoti hii kuhusu Hazina ya Kitaifa ya Maendeleo ya Maeneo Bunge (NG-CDF). Nawashukuru sana. Ni kweli kwamba kila mahali sasa miradi inayotekelezwa kupitia NG-CDF inaonekana katika maeneo mengi ya nchi. Asanteni sana, na Mungu awabariki.

The NG-CDF has also supported construction of essential infrastructure. In my constituency, I have constructed the Land Registry. Before the NG-CDF was in place, people used to travel a about 100 kilometres to access Land Registry services. For example, in my constituency people used to travel to Machakos Town, which is 100 kilometres from Yatta Constituency to get the Land Registry services. The amount of money they spent to and from Machakos was about Ksh1,000. That challenge was mitigated when I constructed the Land Registry Office with the NG-CDF and operationalised it with the support of the Government of His Excellency Dr William Samoei Ruto. If the court now asks my constituents to go and do a land search, they will just walk to the office and have it done. Previously, people used to go all the way to Machakos Town to get those services and when they returned, they found the court had adjourned and the matter pushed forward by a month. You can imagine the frustration that my constituents went through. Through the NG-CDF, that has been mitigated and it is now an old story.

Environmental conservation is another essential service that we get through the NG- CDF. We have tree planting in schools and rehabilitating drifts within schools. We are talking about gabions and many other environmental conservation activities that have been supported by the NG-CDF. When I saw the Report and saw that resources had been used properly to support some of these activities, I said I should come and support it.

Improving security is another area where we have been able to score strongly through the NG-CDF, particularly through the construction of police stations. In my constituency, I have constructed a police station, one of its kind, through the NG-CDF. I have also constructed several chiefs’ offices, assistant chiefs’ offices and the Assistant County Commissioners’ offices. All this has been achieved through the NG-CDF. That is why we say this is a fund that has really contributed to desirable results, which we would not have achieved if it were not there.

We need to champion the timely disbursement of funds, particularly the NG-CDF, because delays in disbursement are a grey area. As a House, we need to champion this so that projects are completed promptly and can support our people across the country. We also need to ensure that fund managers do a prudent job, particularly by ensuring value for money and proper utilisation of funds. These are the people responsible for managing the NG-CDF, and they should be accountable. When it comes to audit queries, it is not the duty of a Member of Parliament to respond to them. That responsibility lies entirely with the fund managers. That is why we need to ensure they are held accountable. They manage the kitty and should ensure that these resources are used properly. If any audit queries arise, the Member of Parliament should not be implicated, exposed or required to respond to them. This is not a kitty for Members of Parliament; it is a kitty managed by an independent body, the NG-CDF Board, to which the fund managers report. The reporting authority lies with the NG-CDF Board. We must, therefore, ensure that the fund managers take responsibility and account for the money effectively and prudently.

At this juncture, allow me to applaud the CEO of the NG-CDF Board. The current CEO is doing a commendable job. Since he was recruited, there has been a turnaround in the way the NG-CDF funds are managed. We are receiving timely communication through text messages and e-mail. Proper communication is important for oversight, because our job as Members of Parliament is to provide oversight. If you are not privy to what is happening, you are left in the dark, and your ability to provide oversight is compromised. Under the current CEO, that work and level of engagement has improved. We now have a proper communication mechanism, and we should applaud and support him to continue doing a good job.

With those few remarks, I wish to submit and thank the NG-CDF Committee of Parliament, through its Chair, Dr Gideon Mulyungi, who has been able to table the Report and

ensure that we are all apprised of what is happening, particularly in the respective financial years.

Thank you.

ya Bofu pekee. Eneo la Likoni limekua sana, na kwa sasa lina takribani wananchi zaidi ya laki tatu. Kila siku pia kuna watu wanaotoka katika kaunti jirani ya Kwale na kupita katika eneo la Likoni kuelekea sehemu mbalimbali za Kaunti ya Mombasa. Kwa hivyo, tulikuwa na changamoto kubwa katika masuala ya usalama. Hata hivyo, kwa sasa tukienda Timbwani, tuna kituo cha polisi. Tukienda Shonda, pia tuna kituo cha polisi.

Vilevile, tunapanga kujenga kituo cha polisi katika eneo la Dongo Kundu Special Economic Zone ili kuimarisha usalama. Hii ni kwa sababu wakati fulani hali ya usalama ilikuwa imedorora kutokana na tatizo la dawa za kulevya. Vijana wadogo pia walikuwa wamejiingiza katika makundi yanayojulikana kama “Panga Boys”, na hali hiyo ilisababisha changamoto kubwa za usalama. Tunashukuru sana kwa sababu fedha hizi zimeweza kutusaidia kuboresha hali hiyo.

Pia, ningependa kuishukuru Kamati kwa kutembelea maeneo mbalimbali na kufanya ukaguzi ili kuhakikisha kwamba fedha hizi zimewanufaisha Wakenya na kwamba zimetumika kwa njia inayofaa. Ni muhimu sana kwa Bodi yetu kutembelea kila eneo bunge na kuhakikisha kwamba fedha hizi zinawafikia Wakenya kupitia miradi iliyowekwa na kutekelezwa chini ya Hazina ya NG-CDF. Inasikitisha kuona maeneo bunge mengine watoto wanasoma kwenye shule za matope, makuti ama ambazo haziwezi kuhimili jua wala mvua. Kwa hivyo, ni vizuri sana iwapo Kamati na Bodi zitaangazia masuala kama hayo.

Wakati mwingine pia tunapata changamoto na District Accountant. Unaandika cheki za bursary na ukipeleke ili zitiwe sahihi ili wanafunzi waweze kulipa shule, unapata kuwa ametoka ama ameenda safari. Hili ni jambo ambalo nimelishuhudia katika eneo bunge langu. Sijui kama hali hiyo inajitokeza katika maeneo bunge mengine, lakini kwangu limekuwa changamoto. Watoto wanafukuzwa shuleni huku ukiwa tayari umeandika cheki za kuwalipia kwani unapata kwamba hazijatiwa sahihi. Naomba jambo hili liangaliwe.

Jambo lingine ambalo ningependa tulizingatie sisi kama Wabunge ni kuhakikisha siku zijazo kuna uwezekano wa kuruhusu fedha hizi zitumike katika programme za kijamii zinazolenga kujenga uwezo wa kiuchumi wa makundi yaliyotengwa, yakiwemo makundi ya kina mama, vijana na watu wenye ulemavu. Tunavyoendelea, nafasi za ajira zimekuwa haba sana. Hatuwezi kuwaajiri watu wote katika taasisi zetu za Serikali au hata za kibinafsi. Iwapo tutaruhusiwa kutumia sehemu ya fedha hizi katika programme za kuwawezesha kufungua biashara au kuanzisha shughuli mbalimbali zitakazowawezesha kupata fedha ili kujisaidia kiuchumi. Hilo litakuwa jambo la msingi sana, na tutakuwa tumewawezesha watu wetu kwa hali ya juu.

Jambo lingine ni kuwa fedha za ugatuzi zimeongezwa na pesa zaidi zinaenda mashinani katika kaunti. Vilevile, lazima tupiganie hazina ya NG-CDF iongezwe kwa sababu kama kuna fedha ambazo mtu hawezi kufanyia ufisadi au kuiba, ni hazina ya NG-CDF. Watu wengine hufikiria kwamba pengine sisi Wabunge ndio tunapewa zile pesa ili tuzigawanye na kuwapa wananchi. Hapana. Kazi yetu ni kukaa na wananchi, tunawasikiliza, wanatuambia matakwa yao katika ile miradi husika na baada ya hapo fedha zinatengwa na wanalipwa kupitia taasisi za Serikali husika. Kwa hivyo, ni fedha ambazo huwezi kufanya ufisadi nazo, na ni fedha ambazo zimetusaidia sana. Zimeinua maeneo Bunge mengi sana na kuinua watoto wengi sana kielimu. Ingekuwa hizi fedha hazipo, watoto wengi sana wa Kenya hawangepata elimu. Huu mfumo mpya uliokuja, ingekuwa ni…

people. The rest of the funds we have in this country are managed in a way that people are not attached to the management of those projects.

NG-CDF has done a lot for our citizens. In my constituency, that is Turkana East, we have done a lot through the NG-CDF Committee Board. The NG-CDF Board has done a lot to the people of Turkana East by building schools. It has also done some work around the security sector. They have done much on administration by building chiefs’ offices and ACCs offices.

As you know, the northern part of this country was left behind during the colonial time and by the subsequent regimes. But when this Fund was introduced, we started catching up with the rest of the country. If the Equalisation Fund had been managed the way NG-CDF is being managed, we, the people who are affected and are supposed to bridge the gap between us and those who had gone ahead of us in terms of development, would have gone far. But the Equalisation Fund went the wrong way.

I have heard my colleagues who have just spoken before me mentioning the funds their counties get. It is a lot of money compared to the allocation to NG-CDF. But if you move around the constituency or county, everywhere you go, there is a project by NG-CDF. If the rest of the funds, like Equalisation Fund, could have been managed the way NG-CDF is being managed, we, the people of northern Kenya and the 14 affected counties, generally, could have gone far. In implementing the Constitution, there were 14 counties which were targeted to benefit from the Equalisation Fund. But I learned that currently, the number has increased to 34 counties. I do not know which law was used to guarantee the counties to rise to that number.

As a House, there are things which we need to incorporate into the NG-CDF. These include water and health. I know these are devolved functions, but it is painful to build a school in an area where there is no water or health centre. You feel bad because those children cannot access water, health centre or even a dispensary because these facilities fall under the county governments. There is need for us to increase the NG-CDF allocation to incorporate some allocation towards health and water, so that we can address these basic needs in our constituencies. Our people should access water and health facilities in the same way that they benefit from classrooms constructed through the NG-CDF.

The other issue is security. Where I come from, we have an issue of banditry, where people are constantly fighting. However, through the NG-CDF, we have done a lot to address this. We have built police stations and police posts along the affected corridors. All these projects have been facilitated through the NG-CDF. There is, therefore, need to increase the NG-CDF allocation to enable us to address security matters as well.

The other issue is bursaries. We have set percentages for bursary allocations, but there is need to increase it so that children from needy families can benefit. Currently, NG-CDF committees are finding it increasingly difficult to provide bursaries to those students because the number of vulnerable children is quite high. Increasing the percentage allocated to bursaries would help a lot of people in our constituencies.

The other issue is the war between the NG-CDF and county governments. This war is largely about publicity. Through the NG-CDF, we have done a lot of publicity because we build schools, administrative and security offices. However, the impact of county government resources is not being felt. Consequently, counties are fighting for the removal of the NG-CDF so that the publicity will not be there. Ordinary citizens are now challenging county governments, asking what they have done with the billions of shillings they receive when the NG-CDF has delivered. The war between counties and the NG-CDF is, therefore, largely about publicity. We thank the President for remaining firm in his support for the NG-CDF and for ensuring that we continue receiving the little funds that enable us to facilitate development.

Finally, I wish to thank the Acting Chief Executive Officer of the NG-CDF Board for the much he has done on reporting, implementation of projects, facilitating the timely approval of proposals and introducing reforms within the Fund. We are receiving a lot of good things

through the Acting CEO. I urge this House to expedite the process of giving him the substantive mandate to run the Fund. Instead of acting, we give him the mandate to run the Fund so that he can continue doing the good things he has initiated in the NG-CDF Board. This will enable us to manage the Fund so that our people can go further in terms of development. Thank you.

With those few remarks, I support.

development. The people walked long distances to vote for the current Constitution when they heard that it would bring equity. The Equalisation Fund was put in the Constitution but what happened to it is despicable. It has since been given out to everybody. It became more of a political tool than an equalisation tool.

The NG-CDF carries the equalization and equity spirit of the Constitution. Every constituency represented in this House, and every county, gets an equitable share of the NG- CDF for development. Even constituencies which have hitherto never had infrastructure now have infrastructure developed using the NG-CDF. The people of Kilifi never imagined that they would have a national school one day. National schools were only in upcountry, and mainly in the Central Region. You had to travel a long distance to access a national school. Probably, there could be only two to three spaces for what we used to call “district focus kids.” Some of us and certain people in this country went to university under a programme called District Focus for Rural Development Programme. It was a rare privilege to have children going to those schools in those days. We now have national schools in almost every part of the country, courtesy of the NG-CDF.

There used to be a national school in Isiolo called Garbatula. We used to be amazed that a place like that would have a national school. They would always say. “Please. go to Garbatula if you do not get placement at Alliance.” That is when we were filling national schools’ forms. Nobody ever wanted to go there. We now have national schools everywhere, courtesy of the NG-CDF. Equality and equity are what will move this country forward. The NG-CDF has shown the way. It has widened the path for equitable development in this country.

Looking at the way this country has developed, and especially the way the current President has tried to promote the concept of equity and equality in terms of distribution of development resources, he is actually saying that as a country, need to develop every part just like the NG-CDF has done. The NG-CDF has given opportunity to people who would never have gone to a good school. Kids who would otherwise have to walk 10 kilometres to access education now have a school nearby. People who would have to walk 20 kilometres to access a police station now have a police station nearby. People who would not have imagined that Government services would ever be brought close to where they live now have those services in their neighbourhood through Huduma centres.

In 2027, we must have the conversation of what the President is bringing in—if you want to be President, will you bring equity to this country? Will you bring equality? Will you distribute development to the whole country or will you just concentrate on that fiefdom or your ethnic background? Some of the people who come out saying they want to be presidents have not visited even three-quarters of this country. They do not even know those areas. How will they bring equity and equitable distribution of resources if they do not even know the third next constituency from their village? It is just because they think they have tribal numbers. Equity and equitable distribution of resources must define the 2027 elections. It must be defined the way the NG-CDF has redefined development in this country. I have been to several countries whose citizens told me that Kenya has one of the best development models in the world known as the NG-CDF. We pride ourselves for being among the first countries to introduce a fund that promotes the principle of equity, which ensures equitable distribution of resources across the country. Some children in this country would never have had the opportunity to attend boarding school or university were it not for the NG-CDF. Therefore, the spirit of the NG-CDF, and of equity and the equitable distribution of resources and development should augment the 2027 elections. This country will become better if we embrace that spirit.

I also wish to join the chorus of Members who have called for an increase in the percentage of the NG-CDF in the budget to double digit, so that we have enough resources to develop neglected areas and promote equity across the country. I have heard the President say,

“Usawa ni sawa.” I do not know how that translates into English, but I believe it is a good principle. This country must move forward on the platform of “Usawa ni sawa”. The NG-CDF is one of the first major public funds to demonstrate what that principle means in practice.

I watched in amazement when I heard the former Speaker of this House describe the NG-CDF as a slush fund for Members of Parliament. I wondered how he could make such a statement when even during his tenure as Speaker, he advocated for the Fund and witnessed the development projects it supported. I even saw him commission visible and tangible projects undertaken through the NG-CDF. The money goes directly towards helping communities and delivering development outcomes. It does not simply disappear. The NG-CDF has demonstrated the way forward in promoting “Usawa ni sawa”. Anyone aspiring to become the President of this country must demonstrate a commitment to this principle and be prepared to allocate resources towards equitable development and moving the country forward.

Hon. Temporary Speaker, it may be against the rules for me to say this, but it is time we called the Mover to reply.

The NG-CDF is facilitating every eligible student to access education. The Fund has changed this country. I urge this House to continue supporting the NG-CDF for the benefit of our people. In the past, when we were in school, we used to be sent home because there was nowhere we could turn to for help. We used to organize Harambee, but today things have changed. Even when we hold Harambee, it is not like before when we mainly relied on them to support students in day schools.

Currently, we give bursaries even to students in day schools so that no student is sent home due to lack of school fees. This money is also helping to provide food for students in these schools. The NG-CDF has changed the lives of many of our people. Most of our people in rural areas are casual labourers, which means they cannot afford to pay school fees for their children. Today, even parents who do not have money are assured that the NG-CDF will cater for their children’s school fees. As we approach the new year, some of our farmers who depend on tea bonuses have not yet received their money. Through the good leadership of the NG- CDF Board, which has allocated us money, we have to ensure that by January next year, the money is available to cater for school fees. This will ensure that no student is sent home because of lack of school fees.

Hon. Temporary Speaker, I am very happy with the NG-CDF because before its introduction, parents had to choose which of their children would go to school. Due to limited resources, they could only educate one or two students. The rest were told that they could not attend school because of lack of money. Today, the NG-CDF complements parents’ efforts to ensure that every student goes to school. This Fund goes a long way in helping our learners. Indeed, it is a game changer because it promotes equity to everyone who wants to go to school. This is what will change our country. The education sector in our country is working today largely because of the NG-CDF. If you visit some of our constituencies and compare the development we are getting through the NG-CDF with the development we are getting through the county governments, wananchi on the ground will tell you that they can see more development through the NG-CDF than through the county governments.

Hon. Temporary Speaker, the NG-CDF administration cost is between 5 per cent and 6 per cent. The rest of the funds go to development. That is why the NG-CDF is the only public Fund which benefits mwananchi. The NG-CDF is felt on the ground because it is helping mwananchi directly. One day, I tried to crack a joke by telling my constituents that we wanted to transfer the NG-CDF to the county government. They said, "No!". If you visit my constituency today and look at Early Childhood Development Education (ECDE), which is the responsibility of the county government, and compare it with the primary and secondary schools, you will find that ECDE facilities have not been properly done, with only one or two classrooms. However, the primary and secondary schools constructed through the NG-CDF are well done and beautiful. That means people are pleased to have those schools.

When I was elected, the school where the former President, who was my very good friend and where he had been elected since 1974 was muddy. We have since transformed that school. I hope His Excellency Dr William Ruto will give us funds to pave the compound with cabro and renovate the school further. That school has been a game changer. From that time, many parents have been moving their children from private schools to that public school because it is very beautiful. The people there…

which is only 2.5 per cent, and look at what it does at the grassroots level, you will appreciate that this is the only Fund whose impact is felt by everyone, including the common mwananchi.

Talking about school infrastructure, particularly under the Competency-Based Education (CBE) system, I wonder what we would have done without the NG-CDF. The construction of new classrooms to cater for the CBE system introduced recently. as well as construction of entire secondary and primary school infrastructure, including equipping of laboratories, has been made possible through the NG-CDF.

The NG-CDF has also helped us with bursary disbursements. Education is the only equalizer through which children from poor families and those from rich families can be at par. The NG-CDF has given hope to the hopeless. There is great joy in seeing a child who has been sent home from school because of unpaid school fees being facilitated through the NG-CDF to return to school. It also makes the child and the parent very happy.

The NG-CDF has also helped a lot in security. I have constructed chiefs’ offices in Machakos Town. I have also constructed Deputy County Commissioner’s Office and sub- county offices, where all the departments of a particular sub-county will be housed. The issuance of national identity cards, registration of births and deaths, and registration of social groups will all be done there, courtesy of the NG-CDF. I will commission it early next week. I have also constructed an Administration Police office, which is a very good block.

Through the NG-CDF, we have lit up dark areas in Machakos Town. For example, through the matching grant by Rural Electrification and Renewable Energy Corporation (REREC), we contributed Ksh5 million and they matched it with Ksh5 million. I have lit up some dark areas in my ward through the NG-CDF. People are very happy about it.

We used to have sports allocation, but it was removed. I request that we, as a House, considers taking back sports funding. Students have closed schools and are at home. They need to be engaged properly. If we could return the sports kitty to the NG-CDF, it would engage the vibrant youth so that they do not engage in bad behaviour.

Finally, I would like to comment on the new CEO of the NG-CDF. He should ensure that we receive timely disbursements of funds. I would also like to commend the managers who administer the Fund. They manage it properly. The NG-CDF also supports environmental activities such as soil conservation. For example, in Machakos Town, I constructed gabions in areas where we had big gullies. My constituency is hilly, and there is a lot of soil erosion. I provide water tanks and facilitate provision of water to the community. I strongly recommend that we increase the allocation of the NG-CDF from 2.5 per cent to at least 5 per cent, which is double the allocation.

Thank you, Hon. Temporary Speaker.

have many problems with water. It would create a big impact in our communities if we were allowed to undertake water development through NG-CDF.

With those few remarks, I beg to reply.

BILLS

Second Readings

THE SACCO SOCIETIES (AMENDMENT) BILL

(National Assembly Bill No. 32 of 2026) (Bill deferred)

THE ANTI-DOPING (AMENDMENT) BILL

(National Assembly Bill No. 66 of 2026)

THE INVESTMENT AND EXPORT PROMOTION AUTHORITY BILL

(National Assembly Bill No. 37 of 2026)

THE TOURISM (AMENDMENT) BILL

(National Assembly Bill No. 41 of 2026)

THE KENYA ECONOMIC ZONES BILL

(National Assembly Bill No. 46 of 2026)

(Bill deferred) Next Order.

MOTIONS

ADOPTION OF 11TH REPORT ON AUDITED ACCOUNTS OF THE TOURISM FUND AND THE TOURISM PROMOTION FUND FOR FYS 2020/2021 AND 2021/2022

ADOPTION OF 11TH REPORT ON EXAMINATION OF AUDITED ACCOUNTS OF VARIOUS UNIVERSITIES

ADOPTION OF 17TH REPORT ON AUDITED ACCOUNTS OF NG-CDF FOR FINANCIAL YEARS 2013/2014 TO 2024/2025

First were the missing records at Isiolo South Constituency. The Committee observed that, for all the 10 financial years under review, the management of Isiolo South Constituency was unable to respond adequately to the audit queries because the primary financial and procurement records were unavailable. The records had been taken into custody by the EACC and had not been returned despite repeated requests. The Fund Account Manager who had custody of the records has since passed on. Without those records, the Committee could not verify the audit queries, and they, therefore, remain unresolved. The Commission is investigating the matter. The Committee recommended that the NG-CDF Board introduce a documented handover protocol, including a signed inventory of records between outgoing and incoming managers. The Board should also pursue the release of the original documents or obtain certified copies from the EACC.

Secondly, on the regular use of public funds at Kaiti Constituency, the Committee observed that during the 2021/2022 financial year, allowances and imprests were irregularly paid to the Fund Account Manager, the NG-CDF Committee Chairperson and the District Treasury Cashier. The DCI established that records had been fabricated, signatures forged and cheque encashments made without adequate supporting documentation. The amount involved in the unsupported transactions was Ksh128 million, while the total value of funds fraudulently withdrawn and not accounted for was Ksh198 million. The DCI recommended the prosecution of the officers concerned and subsequently forwarded the investigation file to the Office of the Director of Public Prosecutions (ODPP) for further action. The Committee observed that the matter remains under active investigation.

Thirdly, on outstanding land and asset registration. the Committee further observed that land matters remained outstanding in two constituencies. In Mbeere North Constituency, title deeds were still pending for land parcels at Kivue Market, Siakago Technical Institute and Riandu Police Station. In Mbeere South Constituency, the title deed was pending for the parcel of land on which the Constituency Office Block stands. The land, which was purchased in 2010, remained registered in the names of the trustees of the former Gachoka CDF.

At Isiolo North Constituency, the Committee observed that some fixed assets had, for several years, remained untagged and uninsured. The Committee recommended that all NG- CDF assets, including land and buildings, be registered in the name of the Board, properly tagged and insured. It further recommended that Fund Account Managers escalate pending title deed applications to the CEO of the Board. The Board should also report on the progress made in implementing the Committee's recommendations within three months of the adoption of this Report and fast-track the processing of the title deed for the Gachoka CDF Office.

The NG-CDF remains one of the most visible instruments of grassroots development in this country. However, its mandate can only be fully realised when its operations are guided by the constitutional principles of openness, accountability and the prudent and responsible use of public money, as provided for under Article 201 of the Constitution, principles that this Committee is mandated to safeguard. This Report underscores the importance of timely disbursement of funds, proper record-keeping and compliance with the law in the administration of NG-CDF at constituency level. Addressing the Audit Queries and implementing the recommended remedies will enhance public trust and support the delivery of development projects in the constituencies.

With those remarks, I beg to move and request honourable…

ADJOURNMENT

1. 7.00 p.m., the House stands adjourned until tomorrow, Wednesday, 4th November 2026 at 9.30
2. a.m.

Prepared by:

Directorate of Hansard and Audio Services

Parliament of Kenya.

* * * * *

Published by:

Clerk of the National Assembly

Parliament Buildings

Nairobi, Kenya.