FACTORS THAT INFLUENCE THE COMPLETION OF CDF FUNDED PROJECTS IN CONSTITUENCY

OYALO NICODEMUS BROWNLEY

Vol. 2 (49), pp 21-36, June 8, 2015, www.strategicjournals.com, ©strategic Journals

FACTORS THAT INFLUENCE THE COMPLETION OF CDF FUNDED PROJECTS IN KANGUNDO CONSTITUENCY

Oyalo, N., Jomo Kenyatta University of Agriculture & Technology (JKUAT),

Bwisa, H., Jomo Kenyatta University of Agriculture & Technology (JKUAT), Kenya

Accepted June 8, 2015

ABSTRACT

Many constituencies are faced with challenges in implementing their constituency development fund projects. During the financial years 2006 to 2012, the Auditor General’s and National Tax Payers’ reports revealed irregularities in procurement procedures and possible embezzlement of millions of shillings by skewing resource allocation, project selection and oversight in Kangundo Constituency (Ngugi, 2014). The purpose of this study, therefore, was to assess the factors influencing completion of CDF funded projects specifically a case of Kangundo Constituency in in Kenya. Descriptive research design, stratified proportionate random sampling techniques and inferential statistics were used. Data collection was done using both structured and unstructured questionnaires, interview schedules and observation of records in the relevant offices. Questionnaires were administered to technical officers, CDFCs, PMCs, and projects’ beneficiaries. A pilot study was conducted to ascertain the validity and reliability of the instruments. The researcher used both the primary and secondary data in the analysis. Multiple regression and descriptive data analysis was used. Data findings were presented in frequency distribution tables and in prose form.

Key Words: CDF Funded Projects

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INTRODUCTION problems, participation by the locals was actually This study explored factors influencing completion passive so whichever deliberation by the of CDF-funded projects in Kangundo constituency government was just agreed upon without in Machakos County. internalizing. In order to address various economic injustices In September 2000, 191 member states of the and low development levels in Kenya since United Nations, Kenya included adopted the independence the Kenyan government had Millennium Declaration (GA Resolution A/54/2000) initiated various reforms aimed at transforming which outlined necessary measures to attain the country to a middle-income country by 2030 peace, security and development. Later an (Owuor, Chepkuto, Tubey & Kuto, 2012). agreement was reached among other multilateral Constituency Development Fund formed one of institutions, including the World Bank, and the IMF the devolved funds channelled by central on key elements of a framework of this global government. (Ngugi, 2014). agenda in the context of goals, targets and The Constituency Development Fund was indicators, collectively referred to as the introduced in 2003 during the Kibaki regime (2002- Millennium Development Goals (MDG’s). The 2013). It was designed to support equitable MDG’s comprised quantifiable global targets set constituency-level and grass-root development. for 2015. These MDG’s included; eradication of Doubts had been raised as to whether the Extreme Poverty & Hunger, Achievement of constituency development fund had met its stated Universal Primary Education, Promotion of Gender objectives, giving a clear indication that the extent Equality & Empowerment of Women, Reduction of to which CDF had met its objectives remained a Child Mortality, Improvement of Maternal Health, research imperative (Bagaka, 2008). Owuor (2013) Combat HIV/AIDS, Malaria and other diseases, argued that CDF management faced various Ensure Environmental Sustainability and Develop a challenges, some of which included: the Global Partnership. As part of strategy to achieve organization structure in managing CDF projects, these goals, in 2003, the government of Kenya project identification criteria, political interference established the Constituency Development Fund and corruption. (Ngugi, 2014) (CDF). Mungai (2009) asserted that CDF’s origin could be The Constituency Development Fund was traced back to the CDF Bill drafted by opposition established under the CDF Act 2003, amended in MPs in a bid to have equitable distribution of 2007, repealed in January 2013 and replaced with resources across the country. The CDF is one of the CDF Act 2013 that was aligned to the constitution devolved funds meant to achieve rapid socio- of Kenya 2010. CDF was to help in development by economic development at constituency level channelling financial resources to the Constituency through financing of locally prioritized projects and level for the implementation of community based enhanced community participation (Owuor et al., development projects with long term effects of 2012). CDF aimed at decentralizing resources to improving social and economic well-being of the constituencies for equitable development. citizens. Another objective of the introduction of Little success was achieved due to politicization the CDF was to control and reduce imbalances in and the misallocation of resources of most of regional development brought about by partisan these programs (Cort & Kinyanjui, 2010). In 1983, politics, (Mapesa & Kibua, 2006). Kenya government adopted District Focus for Rural constitution in 2010 was passed and became law Development (DFRD) which was aimed at in 2010. It took into account devolution that enhancing geographical equity where funds were allowed formation of forty seven counties. The allocated to less developed districts (ROK, 1983). formation of forty seven counties was to; ensure Otieno (2007) argued that DFRD could not achieve equitable allocation of resources, promote social much as most of the projects were identified, and economic development across the country, monitored and implemented by the government, facilitate the decentralisation of State organs, their locals were only used as rubberstamp by functions and services, from the capital of Kenya assembling them and informing them their and enhanced the participation of the people in

22 | P a g e the exercise of the powers of the State. All moneys up to 24.1 billion was allocated for the year allocated under CDF Act, 2013, were additional 2012/2013. revenue to the county governments. Despite the above increment in the funds The implementation of community development disbursed to various constituencies, most of the projects started with the identification of the CDF funded projects were not completed needs (Mwangi, 2005). This was in line with the successfully. Audit reports by the Auditor General CDF Act, 2013 section 23 (2, 3&4) that required Office and civil society indicated that there was an that location meetings be held to select projects to increased case of stalled projects funded by be submitted to the CDFC before onward constituency development committees across the transmission for funding. The CDF Act of 2013, country. Kangundo constituency is one of the circulars, public procurement and disposal Act constituencies that received the constituency 2005 and the CDF implementation guidelines 2004 development funds from the government. prepared by the National Management Committee A report by the Kenya Tax Payers Association for provided that CDF projects were implemented by 2007/08 indicated that 40% of the CDF could not the respective government department in which be accounted for, 20% of the projects had not they fell (Gikonyo, 2008). All the constituents in been successfully completed and only 5% had every constituency were expected to be active in been completed successfully, and over 35% had the implementation of all the approved projects to been well utilised. It is for this reason that this ensure that objectives of the project were met study was carried out to find out the factors that using resources allocated for them within a given influenced the successful completion of the period of time. In addition the Act gave technical constituency development fund projects in department and CDFC authority to monitor the Kangundo Constituency. projects. (Ngugi, 2014) Parliamentary involvement in grassroots projects and in community development had grown in a 1.3 Objectives of the study. diverse set of countries, including Kenya, Pakistan, 1.3.1 General Objective. India, Uganda, Bhutan, Jamaica and Papua New The main objective of this study was to investigate Guinea (Mwangi & Meagher, 2004). One policy the factors that influenced the successful tool for this involvement was Constituency completion of CDF funded projects in Kangundo Development Funds (CDFs), which dedicated Constituency. public money to benefit specific political subdivisions through allocations and/or spending decisions influenced by their representatives in the 1.3.2 Specific Objectives national parliament. CDFs resembled the i. To find out how timely funding affected venerable U.S. congressional allocations generally the implementation of CDF projects. called “pork barrel,” “earmarks” or “member ii. To determine the role of MPs in CDF items” in national and state-level policy making. projects. (Ngugi, 2014). 1.4 Research Questions. Problem Statement i. What was the impact of timely Constituency Development Fund was introduced in disbursement of funds to CDF project Kenya in 2003as one of the devolved funds. This implementation? Act was later on amended in the year 2007. By ii. Did the involvement of Members of that time every constituency received an annual Parliament affect CDF project amount of Kshs. 6,000,000 each for its implementation? development activities. Later on, the funds were increased depending on the population, size, poverty level and graphical size of each constituency. Since then the funds were increased,

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1.6 Scope of the Study those who are in low in it to engage in activities or This study was carried out in Kangundo tasks that have a high degree of individual constituency that covered both Matungulu and responsibility for outcomes, require individual skill Kangundo districts respectively. It was carried out and effort, have a moderate degree of risk, and in the months of August 2012. include clear feedback of performance. Technical officers/staff could be de motivated due to poor performance of politically appointed illiterate THEORETICAL REVIEW Project Management Committee Members. a) Agency Theory c) Contingency Theory Agency theory explains the relationship between Contingency theories describe how situations principals such as shareholders and agents such as influence leadership actions. The Hersey-Blanchard company executives in a business. In this Situational Leadership Theory created by Hersey & relationship, the principal delegates or hires an Blanchard (2009) encourages leaders to choose a agent to perform work. The theory attempts to style based on the capability of their subordinates. deal with two specific problems. Firstly, that the If new subordinates need specific instructions, goals of the principal and the agent are not in effective project managers tell them what to do, conflict which is referred to as agency problem. typically by providing comprehensive step-by-step Secondly, that the principal and agent reconcile procedures (Hersey & Blanchard, 2009). different tolerances for risk. The central idea When team members know how to accomplish a behind this theory is that the principal is too busy, task, project managers tell subordinates what unwilling or is not qualified to do a given job and needs to be done but spend less time so ends up hiring an agent. The major challenge in communicating how to do it. If the project team this theory is to get agents to either set aside self- members don't require much direction, the project interest, or work in a way in which they may leader focuses on motivating the team to produce maximize their personal wealth while still quality results. When a project team member can maximizing the wealth of the principal (Eisenhardt, operate completely on his own, the project 2009). The agents in this case who are the manager delegates authority to him/her (Fielder, technical officers should have professional 2004). Using this theory, effective project qualifications in the specific projects. (Ngugi, managers select a style that fits the current 2014) situation to work most productively. b) Motivation Theory Empirical Review According to McClelland (2011), an individual’s motivation can result from three dominant needs Previous Studies on Constituency Development namely, the need for achievement (n-ach), the Fund (CDF) need for affiliation (n-aff) and the need for power A number of studies have been carried out by post (n-p) on the need for achievement. The PMC board graduate students and other researchers on the can perform its duties by management Constituency Development Fund. constituency development fund project when Nyagah (2010) concluded in his study that the provided with right financial management tools biggest challenge that faced CDF funded projects is such as, planning, programming and budgeting that projects undertaken were substandard and systems. The PMCs would need power and implemented selectively. He continued to state authority as advocated by McClelland (2011) to be that only constructors reap heavily from the able to manage CDF projects as budgeted, planned shoddy jobs that they did. This study clearly and approved. The theory of needs would compel captured the belief of most Kenyans that CDF was the BOM to have a single mind preoccupation in meant to benefit a few people. It is true that the management CDF projects. media and it was in public domain that most McClelland (2011) argues that individuals who are Kenyans were not happy with the quality of high in need for achievement are more likely than projects done by CDF. The selective

24 | P a g e implementation of projects was blamed on had continued to receive interest from scholars; Members of Parliament who took projects to areas there was a gap to be filled on the area of project where their political support was strong and deny implementation. areas thought to belong to his political opponents. Still, whichever a new MP was voted in, CDF projects initiated during tenure were often Successful implementation of projects. abandoned leading to many stalled projects. Kuen et al (2008) concluded in a study of critical Baskin (2010) reinforced the above conclusion on factors influencing the project success amongst new MPs abandoning projects initiated by their manufacturing companies in Malaysia that three predecessors by stating that it was necessary to main factors determined success of a project. address the politicized nature of CDF funds, so that These factors were top management support, projects begun in one mandate would be clear project mission and competency of the completed regardless of electoral results. Indeed management team. This was true as without top this was a major challenge with CDF projects as Management support especially with resource many times than not, whenever we had a new MP; allocation and formulation of clear missions, the projects started by previous MPs were abandoned project may not be successfully implemented. A for political reasons. This resulted in the objectives competent team with the requisite qualifications of the initial project being left unattained and in project management and with proper technical hence leaving a big gap unfilled. The management skills was also required for the success of the of CDF funds should have found ways to promote project. Munns et al (1996) observed that selecting continuity and ensure that all started projects the right project at the outset and screening out were funded to completion before new ones were potential unsuccessful projects would be more started. This also called for a well managed important to ensuring total project success. Indeed transition process that was absent. A research by this should have been a very useful observation for Mapesa et (2006) on Kangundo constituency CDF funded projects as no proper project showed that 93% of the 300 respondents indicated screening was done leading to poor project that they had never participated in community selection and eventually failure of the projects to needs identification. This meant that the true spirit meet stakeholder needs. of Constituency Development Fund which was to Hussen (2010) concluded that participatory bring development closer to the community by leadership, and goal oriented leadership among allowing them full participation in decision making others increased project implementation. In Kenya was not practiced in the constituency. The study where CDF funded projects were supposed to be further found out that 65% of the respondents identified by the local community, Members of were not satisfied with the CDF committee Parliament were expected to spearhead this members; yet this was the committee that was process by holding locational meetings after every supposed to spearhead development on behalf of two years. However, this never happened as the the community. There was no way that the MPs decided which projects were to be community could benefit from the decisions of a implemented without the participation of all committee that was not meeting their interests. stakeholders. This explained the situation where The same study concluded that the CDF if faced most of the CDF funded projects were rejected by with a number of challenges including; lack of the would-be beneficiaries. Most projects had no monitoring and evaluation, low awareness levels, specific goals making them vague investments. lack of community participation, and political Bjeirmi et al (1996) observed that successful interference among others. This study was an eye projects management techniques would opener on how various CDF affairs were carried contribute to the achievement of projects, but out and it presented a starting point for any project management would not stop a project scholar who had an interest in carrying out studies from failing to succeed. This would be interpreted on CDF. From the above literature review, one can to mean that what matters in the successful rightly conclude that even though the area of CDF implementation of projects was not just project

25 | P a g e management but rather the techniques that were RESEARCH METHODOLOGY employed in project implementation. Research design Conceptual Frame Work The descriptive research design was used in the study. The survey method was used with

Timely disbursement questionnaires being employed to collect primary of CDF data from CDF officials and Project Management Committees. The researcher distributed  Budgeting questionnaires to respondents who were given 3  On time funding Completion days to fill them. of CDF The study covered a period of eight weeks from funded projects December 2012 to February 2012.

Involvement of MP

 Target Population Project Identification The population constituted all the 15 members of Kangundo CDF, Project Management committee  amount of executive members and government officials allocation to the project involved in the implementation of CDF projects in Kangundo Independent variables Dependent Variable Sampling design Figure 1; Conceptual Frame Work The population sample was selected at random from among the CDF funded projects in Kangundo a) How variables in the conceptual constituency.The non-probability method was framework were measured. used for sampling. Convenient sampling technique The degree of community involvement in project was used. selection and implementation were measured by Mugenda & Mugenda (2003) argue that for a finding out how many times the community was sample to be representative enough, it should consulted when projects were selected and how be at least 10% of the target population if the many members of the CDFC and Project sample is more than 1000, otherwise the Management Committees were directly elected by percentage should be higher. The sample size the loca