Win for MPs as Court of Appeal Revives NG-CDF Act Amid Ongoing Legal Battle
Members of Parliament have received a major legal boost after the Court of Appeal overturned an earlier High Court decision that had declared the National Government Constituencies Development Fund (NG-CDF) Act, 2015 unconstitutional.
The ruling marks a significant development in the long-running legal dispute surrounding the fund, which has for years played a central role in financing grassroots development projects across the country.
In its decision delivered on Friday, February 6, the Court of Appeal found that the High Court had made an error by nullifying the entire NG-CDF law.
The appellate judges held that the earlier judgment went too far in invalidating the whole Act instead of addressing specific areas of concern.
As a result, the fund remains operational for now, giving Members of Parliament a temporary victory as the matter continues through the legal system.
The dispute began after a three-judge High Court bench ruled on September 20, 2024, that the NG-CDF Act of 2015, together with amendments introduced in 2022 and 2023, violated the constitutional principle of separation of powers.
The High Court judges argued that elected Members of Parliament are not constitutionally allowed to directly manage or influence development projects, as such responsibilities fall under the executive arm of government and, in many cases, county governments.
According to the High Court ruling, the existence of the NG-CDF created duplication of roles between the national government and county administrations.
The judges noted that development activities funded through NG-CDF overlapped with functions already assigned to counties under the Constitution, raising concerns about accountability and legality.
They further emphasized that MPs are constitutionally mandated to perform roles limited to representation, legislation, and oversight, and not the implementation of development programmes.
However, during the appeal proceedings, the National Assembly defended the fund by arguing that constituencies are officially recognised as service delivery units under the National Government Coordination Act.
On this basis, Parliament maintained that NG-CDF programmes are national government functions and therefore do not interfere with or duplicate county government responsibilities.
The National Assembly insisted that the fund plays an important role in addressing local development needs that might otherwise remain unmet.
Even as the Court of Appeal overturned the blanket nullification of the Act, the judges directed that the fund and all its ongoing programmes, projects, and activities should cease operations by midnight on June 30, 2026.
This timeline aligns with the close of the financial year, effectively giving Parliament and other stakeholders time to address legal and constitutional concerns before the deadline.
The NG-CDF has a long history in Kenya’s development framework. It was first introduced in 2003 as the Constituencies Development Fund (CDF) through legislation passed by the 9th Parliament.
The main aim at the time was to decentralise development funds and ensure that resources reached grassroots communities more directly, particularly in areas affected by poverty, inequality, and slow development.
Following the promulgation of the 2010 Constitution, the fund underwent restructuring to align with the new governance system that clearly separated national and county functions.
This led to its rebranding as the National Government Constituencies Development Fund on February 19, 2016, under the NG-CDF Act 2015, in an effort to comply with constitutional requirements.
Over the years, the NG-CDF has handled substantial public funds. Since the 2013–2014 financial year when its current operational structure began, the fund has received more than Ksh491 billion cumulatively.
Annual allocations have continued to grow steadily, reflecting its expanding role in local development.
The allocation stood at Ksh53.53 billion in the 2023–2024 financial year, increased to Ksh54.77 billion in 2024–2025, and is projected to rise further to Ksh55.9 billion in the 2025–2026 financial year.
By law, at least 2.5 per cent of national revenue is set aside for NG-CDF each year. Individual constituencies receive different amounts depending on allocation formulas, with some constituencies expected to receive more than Ksh221 million during the 2025–2026 financial year.
These funds are commonly used to support education bursaries, infrastructure projects, health facilities, security improvements, and youth empowerment initiatives.
President William Ruto has consistently expressed strong support for the NG-CDF, describing it as a key tool for delivering development directly to ordinary citizens.
In November 2025, the President reaffirmed his backing for the fund, noting that it has enabled thousands of students to access education through bursaries and scholarships while also supporting the construction of classrooms, roads, and health centres in underserved areas.
He has argued that the fund remains essential in promoting inclusive development and empowering communities at the grassroots level.
Despite the Court of Appeal’s decision, the legal debate surrounding the NG-CDF is far from over. The case is now expected to proceed to the Supreme Court, which will ultimately make the final determination on the constitutionality and future of the fund.
The outcome of that decision is likely to have far-reaching implications for how development funds are managed and distributed in Kenya’s devolved system of government.
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