Ministry says CDF disbursement on track, releases K7.8 billion for project preparatory activities

The Ministry of Finance, Economic Planning and Decentralization says the disbursement of resources under the reformed Constituency Development Fund (CDF) is on track, with MK7.8 billion already released to local councils for project preparatory activities by the end of June 2026.

The clarification follows growing public concerns over delays in the release of CDF funds since the beginning of the 2026/27 financial year.

In a statement, Principal Secretary for Decentralization in the Ministry, Peterson Ponderani, said the current CDF framework differs from the previous arrangement, where councils received funds before projects were identified and assessed.

Ponderani explained that under the reformed CDF, resources are released only after projects have gone through identification, technical appraisal and procurement processes.

“In the previous CDF, local councils would decide which projects to implement after they had already received funding. Under the current CDF, funding will only be provided after projects have been identified, technically appraised, and all procurement processes completed,” Ponderani said.

He said implementation funds will be released once procurement is concluded, including advance payments to contractors.

“Subsequent disbursements will then be performance-based and will be made upon submission of valid work certificates and funding requests,” he added.

According to the Ministry, the first phase of CDF financing — covering project preparation activities — commenced in May 2026, and by 30 June 2026, MK7.8 billion had been disbursed to local councils.

Ponderani said the funds are meant to support activities necessary for preparing projects for implementation, while further releases will depend on councils meeting required conditions.

“As of 1st July 2026, not all local councils had finalized the identification and appraisal of projects to be implemented. Some have, however, completed the process and are now procuring contractors,” the statement said.

The Ministry said councils that have completed procurement processes will receive resources for advance payments to contractors.

“It is therefore misleading to suggest that CDF disbursement has been delayed,” Ponderani said.

The Treasury, according to the statement, will continue releasing project management resources based on cash flow submissions from local councils as projects progress.