Members of the National Assembly have raised concerns over the slow disbursement and implementation of projects funded through the Equalisation Fund, with MPs from marginalised areas demanding faster release of funds and stronger accountability.
The concerns were raised by Tiaty MP William Kamket and Samburu West MP Naisula Lesuuda after National Treasury Cabinet Secretary John Mbadi disclosed that cumulative receipts into the Equalisation Fund stood at Sh22.42 billion against a constitutional entitlement of Sh90.34 billion.
This leaves outstanding arrears of Sh67.92 billion, representing 75.2 per cent of the total entitlement.
The MPs questioned the Treasury over delays in releasing funds meant to improve basic services in marginalised communities, including access to water, electricity, roads, health facilities and education infrastructure.
Kamket sought a detailed account of the implementation of Equalisation Fund projects in Baringo County for the financial years ending June 2023 and 2024.
He sought information on the amounts allocated and disbursed, as well as the status of projects approved under the Fund.
The MP also asked Treasury to explain whether the Government would consider directly implementing approved projects to reduce administrative delays.
He further sought clarity on how the national and county governments would coordinate the implementation of projects funded through the Equalisation Fund.
In response, Mbadi said Sh595.03 million had been appropriated for Equalisation Fund projects in Baringo under the 2023 Appropriation Act.
The funds were intended to finance projects covering 90 marginalised areas across 15 wards and four constituencies in the county.
However, only Sh174.15 million had been requisitioned and transferred to Baringo County’s Special Purpose Account by June 30, 2026.
This represented an absorption rate of about 29 per cent.
Of the 150 project proposals submitted by Baringo County, 144 had been approved.
Treasury reported that 46 projects had reached between 90 per cent and 100 per cent completion, while 88 projects were below 50 per cent completion.
Mbadi attributed the slow absorption partly to delays by the county government in submitting project proposals and requisitions.
Kamket also questioned whether Treasury would return to a system where the national government directly implements Equalisation Fund projects.
Mbadi said the Government would first seek legal advice from the Attorney-General on the effect of a 2019 High Court judgment that declared earlier guidelines allowing direct implementation unconstitutional.
“The National Treasury will seek the advice of the Office of the Attorney-General on a review of the 2019 High Court judgment,” Mbadi said.
He said administrative delays were also being addressed through the conditional-grant framework.
According to the CS, guidelines introduced in July 2024 provide for the direct transfer of approved funds into County Special Purpose Accounts.
He said the arrangement had shortened the disbursement chain, while Treasury was also working to streamline project appraisal, approval and disbursement.
Lesuuda separately demanded a county-by-county breakdown of Equalisation Fund arrears and disbursements as the country entered the 2026/27 financial year.
The MP also questioned whether the Fund had achieved its constitutional objective of uplifting the most marginalised communities.
She further sought an explanation for the increase in the number of beneficiary counties from the original 14 to 34.
Treasury said Sh11.8 billion was appropriated under the 2018 Equalisation Fund Appropriation Act for 360 projects in the original 14 beneficiary counties.
Of this amount, Sh10.98 billion, equivalent to 93 per cent, had been transferred to implementing ministries, departments and agencies.
Under the 2023 Appropriation Act, a further Sh10.02 billion was approved for projects in newly identified marginalised areas.
By June 30, 2026, counties had received Sh6.92 billion, representing 69 per cent of the approved amount.
This left Sh3.10 billion undistributed.
Mbadi explained that the number of beneficiary counties increased to 34 following the adoption of a second marginalisation policy based on a more detailed assessment of deprivation.
The assessment identified 7,131 marginalised areas across all 47 counties.
The areas were ranked using indicators such as school attendance, access to safe water, electricity and sanitation.
The Treasury said the approach was intended to ensure that resources reach communities experiencing the highest levels of deprivation, rather than relying solely on county-level classifications.
Mbadi said the Government was taking measures to improve the implementation and accountability of Equalisation Fund projects.
These include joint monitoring of projects, strengthening the capacity of county governments and establishing an integrated project information system.
Treasury also plans to deepen engagement with counties and implementing agencies to address delays and improve project delivery.
The Equalisation Fund was established under the Constitution to provide basic services to marginalised areas and help address historical disparities in access to essential public services.
However, the large outstanding arrears and slow implementation of some projects have continued to raise questions over whether the Fund is achieving its intended purpose.
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