MPs slam Equalisation Fund Board over questionable projects in marginalised areas
The National Assembly’s Finance and National Planning Committee has criticised the Equalisation Fund Board for mismanaging billions of shillings meant to uplift marginalised areas, accusing it of implementing projects outside its constitutional mandate.
During a sitting held at Parliament Buildings on Wednesday, July 16, 2025, the Committee, chaired by Molo MP Kuria Kimani, raised concerns over what it termed as poor value-for-money projects.
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Lawmakers questioned why the Board had funded activities such as street lighting, laying of cabros, construction of staff houses, and kitchen renovations—initiatives not aligned with the Fund’s intended purpose of financing water, roads, electricity, and health facilities in underserved areas.
“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?” Kuria Kimani stated, as quoted in a Press statement from the Parliament dated July 16, 2025.
Questionable projects
The MP highlighted a particular project, the construction of a staff house at Chalaluma Dispensary in Witu, Lamu, which cost Ksh6.2 million.
He also raised concerns about the varying costs of irrigation schemes in the same area, noting that a five-acre project cost Ksh2.6 million while a ten-acre project was allocated Ksh3.6 million.
“There are some questionable projects like the construction of a staff house at Chalaluma dispensary in Witu, Lamu, at a cost of Kshs.6.2 million. If projects are this arbitrary, how can we ensure value for money?” Kimani asked.
“The projects are so diverse that even if you allocate the fund for 10 years, it will never make sense,” he added.
Inaccurate reports
The Committee also flagged inaccurate progress reports, such as a bridge in Turkana South reported as two per cent complete by the Board, while the area MP and committee member, John Ariko, claimed it was already 40 per cent done.
“This board is presenting misleading reports that casts doubt on the accuracy of its project data,” Ariko stated.
“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,” he added.
Duplicating roles
The MPs questioned why the Fund was duplicating functions of the National Government Constituencies Development Fund (NG-CDF) by financing classroom construction and overlapping with county government responsibilities.
Kitui Rural MP David Mboni accused both the Board and the Commission on Revenue Allocation (CRA) of undermining the fund’s core objective.
“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 stated.
Board’s response
In response, Engineer Mohamed, representing the Board, defended the accusations, stating that all funded projects were selected by the CRA and executed by government agencies, not the Board itself.
“The Equalisation Fund has no role in identifying beneficiaries and needs of a region. This is done by the CRA,” Mohamed clarified, blaming county governments for implementation failures.
The board revealed significant funding shortfalls, with Mohamed stating that the total entitlement to the Equalisation Fund from the Treasury stood at Ksh80 billion as of June 2025. However, he says that only Ksh39.89 billion had been appropriated, with merely Ksh15 billion released to the Fund.
“The unpredictable movement of funds has resulted in many audit queries. We have people queuing for pending bills,” Mohamed explained.
Kuria Kimani was forced to adjourn the meeting after determining that the data submitted on the fund’s projects was inconsistent with ground realities.
“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 really created any impact,” Kimani stated.
