National Government Constituencies Development Fund Act

Short title and commencement; commencement is upon publication of the Act.

Section 2 lists and defines terms used in the Act (interpretation/definitions).

Provides for the establishment and administration of the Fund (the National Government Constituencies Development Fund).

Sums set aside under sections 8 and 9 must be properly accounted for, proper books of accounts must be kept, and returns made to the Constituency Committee for that constituency on how the sum has been used.

The Auditor-General must audit and report on all funds received under this Act.

Each constituency must open and maintain a constituency operations account and one deposit bank account for holding third party monies; the Fund account manager has authority to incur constituency expenditure.

The Fund must have a bank account at the Central Bank of Kenya; the signatories are the chief executive officer and three persons appointed by the Board from among its members; the chief executive officer's signature is mandatory on all payment cheques or instruments releasing money together with at least one of the other three signatories.

Section 4 establishes the National Government Constituencies Development Fund, requires it include at least 2.5% of the national government's share of revenue, allows it to comprise monies accruing to or received by the Board, and states the Fund is to be administered by the Board.

Section 5 governs disbursement from the National Government Constituencies Development Fund: the Board must approve and record disbursements; constituencies must submit annual receipts and expenditure records with bank statements within thirty days after the financial year end; the Board must set conditions for release of funds and may impose restrictions on constituencies.

The Board must, with the approval of the relevant Committee of the National Assembly, allocate funds for every constituency each financial year in accordance with section 34.

Receipts, savings and accruals to the Fund and the Fund balance at the end of each financial year must be retained in the Fund and applied in accordance with this Act.

Keeps five per centum of the Fund as an unallocated Emergency Reserve available for constituency emergencies; the Constituency Committee must determine its allocation; "Emergency" is defined as an urgent, unforeseen need for expenditure that cannot be delayed until the next financial year without harming the public interest of constituents.

The project management committee must set aside up to five per cent of a project's total allocation to cover the project's administration expenses.

Establishes the National Government Constituencies Development Fund Board and lists powers including suing and being sued, acquiring and disposing of property, borrowing and investing, and performing acts necessary for its functions.

Section 15 sets out the composition of the Board, listing specific ex officio members and appointed members, requires consideration of gender equity and regional diversity when nominating or approving members, requires the Cabinet Secretary to appoint the chairperson from among the seven appointed persons, and states the chief executive officer is an ex officio member without a right to vote.

The Board must consider eligible development project proposals from constituencies, approve those consistent with the Act for funding, and send funds to the constituencies' operations accounts.

The Board has the power to receive gifts, donations, grants or other money and equipment and to make legitimate disbursements from them.

The National Government Constituencies Development Fund Board must have its conduct and regulation of business as set out in the Second Schedule; except as provided in the Second Schedule the Board may regulate its own procedure; it must refer policy issues arising in performing its functions to the Cabinet Secretary; and it may make official or impromptu visits to projects at times it deems appropriate.

Section 19 is titled "Vacancy".

Sets procedures and timelines for filling vacancies on the National Government Constituencies Development Fund Board, including nomination by the Cabinet Secretary, vetting by the National Assembly, appointment by Gazette, and a gender composition requirement.

The Board must recruit a chief executive officer through a competitive process and recommend appointment to the Cabinet Secretary for approval by the National Assembly; the chief executive officer must have specified qualifications and experience, manage the Board's day-to-day affairs subject to the Board's directions, and serve for three years renewable once.

The Board must appoint a secretary; the secretary must arrange Board business, keep records and perform other duties as directed and reports to the chief executive officer; the Board may appoint a member or staff to act temporarily in the secretary's absence.

The Board must appoint officers and staff needed to manage the Fund; board officers for each constituency must report to the Constituency Committee; the Constituency Committee must take part in the annual appraisal of seconded officers; the Board may set or change its principal management structure with the Cabinet Secretary's approval.

The Cabinet Secretary must approve the Board's annual budget with the concurrence of the National Assembly Committee.

A project under this Act must be limited to works and services within the exclusive functions of the national government as provided in the Constitution.

The Constituency Committee may, notwithstanding subsection (3), identify a religious body or organization as an appropriate specialized agency for emergency support under section 8.

Constituencies with unspent funds must submit new proposals to the Board; constituencies may pool resources for joint projects subject to approval by each participating Constituency Committee and listing on each constituency's projects.

Section 54(1) says the Act complements other national or agency development efforts and does not exclude areas from other development programmes.

Any person who misappropriates funds or assets from the Fund, or assists or causes such misappropriation or improper application, commits an offence punishable on conviction by at least five years' imprisonment or a fine of at least five hundred thousand shillings, or both.

Sets procedures for forwarding complaints and resolving disputes: the Board forwards criminal complaints to prosecutorial agencies; civil disputes go first to the Board and may be resolved by arbitration appointed by the parties or by the Board on direction from the Cabinet Secretary; management of the Fund is not personally liable for lawful official acts.

The chairperson must hold open public meetings in every ward within the first year of a new Parliament and at least once every two years thereafter to discuss ward and constituency development; the Constituency Committee must consider ward project proposals and other beneficial projects, identify priority projects, and submit the proposed list to the Board.

Every constituency must submit to the Board a list of ongoing and proposed constituency projects within three months of the official release of the budget ceilings, or within another time the Board may determine.

The list of projects must be submitted on the Constituency Projects Submission Form in the Third Schedule accompanied by minutes of the Constituency Committee approving the projects; all proposed projects for every constituency must be listed in the Form with cost estimates, allocated amounts and amounts disbursed.

Every project listed in the Constituency Projects Submission Form must have attached a Project Description Form as set out in the Fourth Schedule.

The Board must table the list of projects received pursuant to section 27 for review, must scrutinize and approve for funding project proposals consistent with the Act, and if it does not approve a proposal it must refer the matter to the Constituency Committee with reasons.

The constituency Committee must determine how large instalments will be when disbursing to projects in the constituency, taking into account amounts received and the projects' requirements.

The constituency Committee must inform the Board of any allocation within forty-five days of allocating funds under section 32.

Projects listed for each constituency must be numbered by the Board and the serial numbers must include the constituency number as delineated by the Independent Electoral and Boundaries Commission so a project retains the same serial number every year until completion.

Sets how constituency budget ceilings are calculated and requires the Chairperson to table a schedule of ceilings; allows the National Government to facilitate additional projects through specified committees.

Constituency Committee must ensure project lists comply with the Act and that total cost falls within the allowable constituency ceiling.

Projects under this Act must be implemented by the project management committee appointed under the regulations, with assistance from the relevant government department and procured private practitioners, and payments processed in accordance with government procurement regulations.

Works and services relating to projects under this Act must be procured in accordance with the Public Procurement and Disposal Act, 2005 (Cap. 412A).

Record of receipts and disbursement is to be tabled at a meeting of the Constituency Committee (a National Government Constituency Development Fund Committee established under (1)).

The Board must keep and update every month accurate records of all project disbursements to every constituency; the Chairperson must submit an annual report; and the Board must submit separate constituency and Board accounts to the Auditor-General at the end of each financial year.

The Board must ensure that approved lists of constituency projects are funded in accordance with the Act.

Projects initiated by a community are eligible for support under the Act if they are submitted with other projects and conform to the Act's requirements.

The Board (the National Government Constituencies Development Fund Board) must ensure that projects are not duplicated, especially when it is prudent to combine efforts for projects benefiting a large section of a community that traverse two or more constituencies.

Establishes a Constituency Committee for each constituency, sets membership composition and selection, requires Board to submit selected names and regulations to the National Assembly for approval, sets meeting, quorum and term rules, custody of records, vacancy filling timelines, and removal procedures.

The Board may suspend a Constituency Committee on receiving a petition, must consider and hear members on the petition, and must dissolve the Committee if satisfied there are sufficient grounds.

The Constituency Committee may engage necessary staff (including ICT, construction and accounting expertise); those staff must assist the Committee with project monitoring, evaluation, co-ordination and record-keeping and must be paid from the Committee's administration and recurrent funds.

Committees may consult government departments or registered private practitioners to ensure project cost estimates are realistic; the Constituency Committee must rank projects in order of priority.

Any eligible development project (or part of it) that involves personal awards to any person, whether in cash or in kind, must be excluded from the list of projects submitted under section 27 of the Act.

Funding for social security programmes, education bursaries, mock examinations and continuous assessment tests shall be treated as development projects but such projects must not receive more than forty per centum of the constituency's total allocated funds in any financial year.

A Constituency Committee must allocate funds for education bursary schemes, education days, teaching and learning activities and other learners' social support programmes; the Board must, in consultation with the Committee, provide guidelines for implementing this section.

The Board may consider part-funding a project financed from sources other than the Fund, provided other financiers or donors do not object and the Fund's allocation is directed to a defined unit, part or phase to ensure completion of that portion.

The National Assembly must establish a Select Committee on the National Government Constituencies Development Fund with a chairperson and up to eighteen other Assembly members; the Assembly must ensure proportionate party representation; the Committee has various oversight duties, must submit reports every two years, and its members serve three-year renewable terms.

The National Assembly Select Committee must consider the reports received from the Board under subsection (1) and table a report to the National Assembly within fourteen days of receipt.

Section 52.Repealed

Section 53 is repealed by Act No. 21 of 2023, s. 13.

Section 53A has been repealed by Act No. 21 of 2023, s. 14.

The National Government Constituencies Development Fund Board may make regulations to carry the Act into effect.

Section 58 sets transitional rules at the Act's commencement: it defines "commencement day", transfers assets, rights, powers and liabilities from the former Constituencies Development Fund Board to the new Board, treats prior references and estimates as applying to the new Board, preserves prior administrative directions, continues employees in their roles and members/the chief executive officer until their existing terms end, and declares the Fund under section 4 to be the successor to the old Fund.