MPs grill Equalisation Fund Board over mismanaged projects, misleading reports
The Equalisation Fund Board is facing heavy criticism from a parliamentary committee over what MPs termed as a failure to properly manage and monitor projects meant to uplift marginalised areas across the country.
During a tense session with the Finance and National Planning Committee on Wednesday, MPs accused the board of approving projects that have little to do with its mandate and presenting inaccurate information on their progress.
Molo MP Kuria Kimani, who chairs the committee, said many of the ongoing 310 projects are either misaligned, duplicated or poorly monitored, resulting in wastage of public funds.
"Looking at projects done, they are spread too thin and are outside the mandate of the Fund. One is left to wonder whether this Fund has created any impact," Kimani said.
The legislatures questioned how the board could justify funding non-core activities like cabro installation, construction of staff houses, street lighting and even kitchen renovations instead of focusing on key basic services such as water, electricity, roads, and health as required under the Constitution.
They also faulted the board for interfering with projects that fall under the jurisdiction of the National Government Constituencies Development Fund (NG-CDF) and county governments. Kitui Rural MP David Mboni expressed concern that the fund’s original purpose had been diluted.
"The Board and Commission on Revenue Allocation (CRA) have diluted the objective of this fund. It was to address the inequalities in Sessional Paper No.10 of 1965," Mboni said.
The Committee chairman raised alarm over discrepancies in project costs, including irrigation schemes where similar projects in the same area had significantly different price tags.
He gave the example of a five-acre scheme that cost Sh2.6 million, while another 10-acre project nearby was allocated only Sh3.6 million.
“There are some questionable projects like the construction of a staff house at Chalaluma dispensary in Witu, Lamu, for Sh6.2 million. If projects are this arbitrary, how can we ensure value for money?” Kimani asked.
The committee also questioned the credibility of the board’s reporting after it emerged that a bridge project in Turkana South, reported as only 2 per cent complete, was 40 per cent done, according to the area MP John Ariko, who is also the committee’s vice chairperson.
“This board is presenting misleading reports that cast doubt on the accuracy of its project data,” Ariko said.
“The information presented to the Committee is wrong in the first place. This board has ignored the law and is implementing projects that were not envisioned.”
When pressed to explain, Board Chair Mahboub Mohamed said all projects were selected by the CRA, and the Fund only provided financing. He blamed the delays and poor results on implementing agencies within both the national and county governments.
“The Equalisation Fund has no role in identifying beneficiaries and needs of a region. This is done by the CRA,” Mahboub told the committee. “The unpredictable movement of funds has resulted in many audit queries. We have people queuing for pending bills.”
Mahboub explained that although the total Treasury allocation to the Equalisation Fund stands at Sh80 billion, only Sh39.89 billion had been appropriated as at the end of June 2025, and just Sh15 billion released for actual use.
The meeting ended abruptly after the committee rejected the board’s explanations and questioned the accuracy of the data provided. Kimani ruled that the session be adjourned until the board could submit verifiable and complete reports.
“If you continue to do all manner of projects from installation of cabros to staff houses, will it serve the purpose for which the Equalisation Fund was established?” Kimani asked.
The Equalisation Fund was established under Article 204 of the Constitution to improve the quality of basic services in marginalised areas to a level comparable to the rest of the country. It targets short-term interventions in food security, health, water, sanitation, electricity, and energy. The Fund is set at 0.5 per cent of the latest audited government revenue as approved by Parliament.
During a tense session with the Finance and National Planning Committee on Wednesday, MPs accused the board of approving projects that have little to do with its mandate and presenting inaccurate information on their progress.
Molo MP Kuria Kimani, who chairs the committee, said many of the ongoing 310 projects are either misaligned, duplicated or poorly monitored, resulting in wastage of public funds.
"Looking at projects done, they are spread too thin and are outside the mandate of the Fund. One is left to wonder whether this Fund has created any impact," Kimani said.
The legislatures questioned how the board could justify funding non-core activities like cabro installation, construction of staff houses, street lighting and even kitchen renovations instead of focusing on key basic services such as water, electricity, roads, and health as required under the Constitution.
They also faulted the board for interfering with projects that fall under the jurisdiction of the National Government Constituencies Development Fund (NG-CDF) and county governments. Kitui Rural MP David Mboni expressed concern that the fund’s original purpose had been diluted.
"The Board and Commission on Revenue Allocation (CRA) have diluted the objective of this fund. It was to address the inequalities in Sessional Paper No.10 of 1965," Mboni said.
The Committee chairman raised alarm over discrepancies in project costs, including irrigation schemes where similar projects in the same area had significantly different price tags.
He gave the example of a five-acre scheme that cost Sh2.6 million, while another 10-acre project nearby was allocated only Sh3.6 million.
“There are some questionable projects like the construction of a staff house at Chalaluma dispensary in Witu, Lamu, for Sh6.2 million. If projects are this arbitrary, how can we ensure value for money?” Kimani asked.
The committee also questioned the credibility of the board’s reporting after it emerged that a bridge project in Turkana South, reported as only 2 per cent complete, was 40 per cent done, according to the area MP John Ariko, who is also the committee’s vice chairperson.
“This board is presenting misleading reports that cast doubt on the accuracy of its project data,” Ariko said.
“The information presented to the Committee is wrong in the first place. This board has ignored the law and is implementing projects that were not envisioned.”
When pressed to explain, Board Chair Mahboub Mohamed said all projects were selected by the CRA, and the Fund only provided financing. He blamed the delays and poor results on implementing agencies within both the national and county governments.
“The Equalisation Fund has no role in identifying beneficiaries and needs of a region. This is done by the CRA,” Mahboub told the committee. “The unpredictable movement of funds has resulted in many audit queries. We have people queuing for pending bills.”
Mahboub explained that although the total Treasury allocation to the Equalisation Fund stands at Sh80 billion, only Sh39.89 billion had been appropriated as at the end of June 2025, and just Sh15 billion released for actual use.
The meeting ended abruptly after the committee rejected the board’s explanations and questioned the accuracy of the data provided. Kimani ruled that the session be adjourned until the board could submit verifiable and complete reports.
“If you continue to do all manner of projects from installation of cabros to staff houses, will it serve the purpose for which the Equalisation Fund was established?” Kimani asked.
The Equalisation Fund was established under Article 204 of the Constitution to improve the quality of basic services in marginalised areas to a level comparable to the rest of the country. It targets short-term interventions in food security, health, water, sanitation, electricity, and energy. The Fund is set at 0.5 per cent of the latest audited government revenue as approved by Parliament.
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