MPs grill Equalisation Fund board over mandate, projects
National
By
Irene Githinji
| Jul 18, 2025
The National Assembly Committee on Finance has questioned the mandate of the Equalisation Fund Advisory Board and demanded a comprehensive report of its operations within the next seven days.
The Committee, chaired by Molo MP Kimani Kuria, yesterday put the board to task over what it termed as glaring inconsistencies in the report presented before them. The lawmakers also questioned the board’s proposal to have funds allocated to it deposited directly.
The committee is seeking a full breakdown of the Sh15 billion allocated to the board since its inception and raised concerns over the alleged misuse of billions meant for water, roads, health facilities, and electricity provision in marginalised areas.
MPs accused the board of overstepping its constitutional mandate by financing projects beyond its scope, including cabro paving, street lighting, staff housing and kitchen renovations—diverting focus from essential services outlined in the Constitution.
The lawmakers wondered why the Fund had decided to finance projects like the construction of classrooms that are handled by the National Government Constituencies Development Fund (NG-CDF) while at the same time duplicating county governments’ functions.
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“There are questionable projects like staff house construction. If the projects are this arbitrary, how can we ensure value for money? The projects are so diverse that even if we allocate money for 10 years, it will never make sense,” said Kimani.
Lawmakers noted discrepancies between the data presented and what exists on the ground, with reports showing variations in actual completion levels.
“This board is presenting misleading reports that cast doubt on the accuracy of its project data. The information presented to the Committee is wrong in the first place,” said Turkana South MP John Ariko. “It has ignored the law and is implementing projects that were never envisioned under the Equalisation Fund.”
Kitui Rural MP David Mboni echoed these concerns, querying why the Fund was financing projects traditionally handled by the NG-CDF or devolved to counties.
“The board and the Commission on Revenue Allocation (CRA) have diluted the original objective of this fund. It was intended to address inequalities identified in Sessional Paper No. 10 of 1965,” Mboni said.
Kuria challenged the board’s request to have funds deposited directly: “Why should Equalisation Funds be treated differently?” he posed.
He demanded clarification of the board’s functions, particularly its role in appraising and evaluating projects proposed by county technical committees to ensure compliance with the Constitution and CRA recommendations.
Appearing before the committee, board chair Mahboub Mohamed said that the Fund operates within legal parameters and follows CRA guidance. “CRA goes round the country and identifies where the Equalisation Fund is needed,” he told MPs.
Mohamed revealed that the Treasury’s total allocation to the Equalisation Fund stood at Sh80 billion by the end of June 2025. However, only Sh39.89 billion had been appropriated, and just Sh15 billion disbursed to date.
But Kuria responded: “If you’re not the implementing agency, who should we turn to? You’re the accounting officers—go and prepare a better report. How do you ensure funds aren’t budgeted for elsewhere?”
The board’s CEO, Guyo Boru, defended the Fund’s legal foundation, citing Article 204 of the Constitution, which requires that 0.5 percent of all revenue collected by the National Government each year, calculated on the basis of the most audited revenue received as approved by the National Assembly, to be paid into the Fund.