Devolved Funds and Economic Growth in Kenya : A Case Study of Nyeri Town Constituency Development Fund

The Constituency Development Fund(CDF) is a form of devolved fund in Kenya,where resources are sent to the grassroots for the local people to determine the priority projects to utilise the funds on. 2.5% of the government revenue is to be allocated to this fund every year. However, since inception in year 2004, the success of CDF contribution to economic growth has been a subject of contention. The intention of this study was to establish whether the large resources allocated to CDF has led to an improvement in the welfare of Kenyans as measured in terms of economic growth. A case of Nyeri Town Constituency was used and the various factors influencing the contribution of CDF to economic growth were analysed. Descriptive survey design was used. A sample of CDF projects was selected. Data was collected using various research instruments and analysed using descriptive statistics. The findings of the study are presented capturing the strengths and weaknesses of the CDF model as identified in the study. Notable finding is that CDF is making some contributions to economic growth. However, there is still some room for improvement. Recommendations for improvements are given at the end.