Gov't blames loan repayments for delay in release of Ksh.33B to NG-CDF

This follows the release of Ksh.7 billion to the NG-CDF board on Wednesday, after Members of Parliament raised alarm over delayed disbursements that have hampered development activities at the constituency level.

Appearing before the National Assembly, Treasury Cabinet Secretary John Mbadi defended the government’s fiscal position, attributing the delays to liquidity constraints experienced in the first quarter of the year. He cited competing statutory obligations, including debt repayments and pressures from the Gen Z movement, which he said had strained the government's fiscal headroom.

“The months of January, March, and April are particularly difficult for the National Treasury and the economy at large,” Mbadi told MPs. “These are months we must prioritize payments such as school capitation for first term learning.”

He assured MPs that any delay in NG-CDF disbursements under his tenure was not intentional, but rather a result of the overwhelming pressure to meet critical obligations. “At times, you have to balance between paying debts and supporting development. If debts are not paid, there will be no economy,” he added.

Mbadi further revealed that the Treasury had defaulted on NG-CDF remittances in January to meet pressing financial obligations, including a Ksh.10.6 billion loan repayment to China for the Standard Gauge Railway, and other commitments totalling Ksh.75 billion. This was in addition to a salary wage bill of Ksh..80 billion.

“It’s not that the Treasury is unwilling to honour the commitments I make in this House. It’s about balancing priorities,” he said.

However, MPs expressed dissatisfaction with the CS’s explanations, citing repeated delays and unfulfilled promises. Bumula MP Wanami Wamboka, who raised the matter in Parliament, criticised Mbadi for failing to follow through on assurances made during previous meetings.

“A lot of what the Minister has said today, he already said in Naivasha,” Wamboka noted. “Hon. Mbadi, we respect you. But when you joined the Treasury as an expert, we expected that any commitment you give this House would be backed by certainty.”

He added, “You’ve put our Speaker in an awkward position. What we expect from you today is a minimum disbursement of Ksh.21 billion.”