The Ministry of Finance, Economic Planning and Decentralisation says it disbursed MK7.87 billion to Local Councils by the end of June 2026 to support project preparation under the reformed Constituency Development Fund (CDF).

In a statement signed by Principal Secretary for Decentralisation, Peterson Pondeni, the ministry says the funds, released between May and June 2026, are part of CDF resources and are meant to facilitate project identification, appraisal and management before implementation begins.

Pondeni said the disbursement demonstrates that implementation of the reformed CDF is on course despite concerns that funding for projects has been delayed.

He explained that the reformed CDF follows a new financing model, which differs from the previous system where Local Councils received quarterly allocations before identifying projects.

Under the new arrangement, project funds will only be released after Local Councils have identified and appraised projects and completed procurement processes.

Treasury will then provide funds for advance payments to contractors, while subsequent disbursements will be made based on project performance, supported by certified works and formal funding requests.

According to the ministry, the new funding model is intended to strengthen accountability, improve project planning and ensure that CDF resources are released only for projects that are ready for implementation.