Devolution and Planning Cabinet Secretary Ann Waiguru said on Thursday that 75 percent of the money will be distributed equally among all the Counties while the remaining 25 percent will be allocated to constituencies according to the poverty index.
The poorest constituencies, as determined by the Commission on Revenue Allocation, will get most of the 25 percent allocation.
Waiguru explained that this money will be available to both women and youths at an equal rate in the form of grants and credit with no interest charged.
“We also have a 10 percent that will go towards capacity building and technical assistance because we do not want to give the money without training,” she said.
“The money will also be a combination of grants and credit. We hope to have about 40 percent going to grants and 60 percent going to credit.”
Waiguru added that the money will be distributed at the Constituency Development Funds offices and will be managed by constituency committees on the ground.
She explained that Members of the National Assembly and Women Representatives will only be charged with nominating ward representatives to the committees.
She also said that the committees must have representation from women, youths and at least one person with disabilities.
“The MPs are the patrons at the constituency level and the County Women representative is the patron at the county level. Their role will only be to support the election and appointment of the ward representatives who will sit in the committees,” she said.
Those interested in accessing the money will be required to come up with proposals, which will be reviewed and awarded by the committees in terms of merit.
They will also be required to pay an administration fee calculated at three percent of the amount borrowed, once their application succeeds.
“There will be no bureaucracy at all. In fact one of the reasons we did not want to use the financial institutions that exist is because we wanted to remove the bureaucracies that are brought in by financial institutions,” she explained.
The government has also set aside tenders worth about Sh200 billion for youths and women.
These tenders will be calculated at 30 percent of all the government expenditure.