April 19, 2025
Nairobi, Kenya
News

Uproar in Parliament as CS Mbadi struggles to defend NG CDF cash crisis

Treasury Cabinet Secretary John Mbadi has finally responded to growing concerns from Members of Parliament over the delay in releasing the National Government Constituencies Development Fund (NG-CDF).

This follows a tense appearance before the National Assembly on Wednesday, April 16, just a day after he was summoned. MPs had threatened to take serious action if he ignored the summons.

The lawmakers were angry over the continued delays in the disbursement of NG-CDF funds, especially with schools about to reopen and many needy students relying on bursaries supported through the fund.

During the session, Mbadi was pushed to honour an earlier promise he made to release the funds before Parliament went on recess. He confirmed that the Treasury had already released Ksh7 billion that very day and committed to releasing another Ksh7 billion by the end of April 2025.

He explained that while he could not promise to release more funds next week due to the need to pay salaries, he would ensure that an additional Ksh7 billion would be sent to the NG-CDF board, reducing the backlog to just one month.

This, he said, was a step in the right direction despite the ongoing financial struggles.Mbadi defended the delays, saying that the Treasury was currently under a lot of pressure to meet several financial demands.

These include disbursing funds to counties and servicing the national debt. He insisted that the delays were not deliberate and that the government was doing its best to balance between different financial needs such as debt payments, CDF allocations, and national security.

He repeated that the hold-ups were a result of financial pressure and not a sign of mismanagement or negligence.

In a moment of frustration, Mbadi also warned MPs against making careless statements about the country’s economy. He referred to a comment made by one of the MPs suggesting that Kenya’s financial situation was dangerous and on the verge of collapse.

Mbadi strongly rejected this claim, calling it irresponsible, especially coming from a leader who has previously chaired the Budget and Appropriation Committee.

He went further to reassure the nation that the economy, though under pressure, was not collapsing. According to Mbadi, the government was on track to reduce its debt burden, with the goal of becoming debt free by the year 2032.

He asked lawmakers to remain calm and work together to support the country through difficult times.

Despite Mbadi’s explanations, many MPs were not satisfied. They reminded him that he had made similar promises earlier in the year during a government retreat, yet delays had persisted.

They argued that Ksh7 billion was not enough and insisted that the Treasury should disburse Ksh21 billion instead.

The pressure remains on Mbadi to keep his word this time and ensure that the funds reach the constituencies without any more delays, especially with the livelihoods of thousands of students at stake.

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