The High Court has ruled that the National Government Constituency Development Fund (NG-CDF) is unconstitutional. The court cited its detrimental impact on the principle of devolution. The court’s decision was delivered by a three-judge bench.
It highlighted that the fund created an unnecessary layer of bureaucracy. This led to the misallocation of public resources. The judges emphasized that the NG-CDF Act, as amended in 2022 and 2023, undermined the intended structure of devolution. It also duplicated existing government functions.
In their ruling, the judges pointed out that the NG-CDF’s operation violated the doctrine of separation of powers. It involved Members of Parliament in its implementation. This involvement was deemed unconstitutional as it disrupted the balance of power among government branches.
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Parliament
Furthermore, the court noted that the fund established a parallel development unit. This unit operated independently of the counties. This contravened constitutional principles about devolution.
The court has mandated that all ongoing projects funded by the NG-CDF be allowed extra time for completion. A deadline is set for June 30, 2026. After this date, the fund and its activities will cease.
The ruling also stated that the petition was filed in the public interest. Hence, each party involved would bear its own legal costs. This decision follows a challenge brought forth by the Katiba Institute in 2016. They argued that the NG-CDF Act violated key constitutional principles.
The court’s declaration marks a significant shift in the governance of public funds in Kenya. It reinforces the importance of adhering to constitutional mandates about devolution and the separation of powers.
The ruling is expected to have far-reaching implications for how development funds are managed and allocated in the future. It will make sure that they align with the principles of accountability and transparency in public finance.
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