The National Treasury has disbursed Sh7 billion to the National Government Constituencies Development Fund (NG-CDF) and Sh1.1 billion to the National Government Affirmative Action Fund (NGAAF), clearing pending balances amid tight financial constraints.
John Mbadi, speaking in Parliament, acknowledged delays in March disbursements but confirmed the April allocations had been processed.
"We defaulted in March, but today, we released another Sh7 billion to NG-CDF," he said.For NGAAF, which had a reduced budget of Sh2.7 billion after supplementary cuts, Mbadi noted that Sh1.6 billion had already been disbursed earlier, with the remaining Sh1.1 billion released today, leaving a zero balance. “The amount was too small to split further,” he explained.
Mbadi highlighted the financial pressures faced in January, March, and April, citing heavy expenditures on school capitation and loan repayments.
In the first term, Sh48 billion was paid to primary, junior secondary, and high schools out of a total annual allocation of Sh96 billion. Another Sh14 billion is due in the second term and Sh24 billion in the third.
Additionally, January saw massive loan repayments, including Sh10.6 billion for the Standard Gauge Railway on January 16, Sh59 billion on January 17, and smaller amounts totaling Sh75 billion.
Combined with an Sh80 billion public wage bill—up from Sh75 billion in December due to salary increments for JSS teachers, disciplined forces, and university lecturers—the Treasury faced a Sh155 billion expenditure before allocating funds to counties or operational budgets.
"After paying salaries and loans, there was no money left for counties, NG-CDF, or other operations," Mbadi stated, underscoring the fiscal challenges facing the government.
