Government releases 94% of 2025 CDF budget, utilisation hits 86%

Government releases 94% of 2025 CDF budget, utilisation hits 86%

The government released 94 percent of the K5.6 billion Constituency Development Fund (CDF) budget for 2025, with 86 percent of the funds utilised by local authorities during the year, the Ministry of Local Government and Rural Development has said.

Speaking at a media briefing, the ministry’s permanent secretary, Nicholas Phiri, said the performance exceeded the government’s utilisation target of 80 percent, reflecting improved absorption capacity across constituencies.

Mr Phiri said the total CDF allocation for 2025 stood at K5,625,071,492.40, of which K5,256,739,654.71 was released to councils nationwide. He said the ministry was “happy to report” that utilisation reached 86 percent, surpassing its own benchmark by six percentage points.

He said the CDF continued to play a major role in community development, with 2,985 projects approved in 2025 at a cost of K2.9 billion, compared with 3,000 projects worth K2.5 billion in 2024. Education remained the largest beneficiary sector.

According to the ministry, 48,985 education beneficiaries were approved in 2025 at a cost of K188 million, up from 33,932 beneficiaries in 2024. Grant empowerment programmes supported 47,071 beneficiaries at a cost of K709 million, while 15,827 community groups benefited from K348 million in empowerment funding, an increase from the previous year.

However, Mr Phiri acknowledged persistent weaknesses in the loan component of the CDF. He said 6,694 loan beneficiaries were approved in 2025 at a cost of K421 million, but the national recovery rate remained below 10 percent.

He said the outstanding loan portfolio, accumulated from 2021 to 2025, now exceeded K2 billion, and urged local authorities to prioritise recoveries so that the facility could function as a revolving fund for future beneficiaries.

On infrastructure delivery, the ministry reported a significant expansion in education facilities. A total of 3,500 classroom blocks were constructed in 2025, up from 2,932 in 2024, alongside 544 staff houses. The number of school desks delivered rose to 855,438 from 661,753 the previous year.

In the health sector, 445 health posts were completed in 2025, compared with 290 in 2024, while 309 maternity annexes and 455 staff houses were also delivered. Water and sanitation projects saw 3,103 boreholes drilled and equipped, up from 1,792 in 2024, and 361 ablution blocks constructed in public spaces.

The ministry also reported progress on road infrastructure, with 4,171 kilometres of roads completed across constituencies by December 2025.

Mr Phiri said several constituencies, including Chienge, Mafinga, Mkushi South, Nyimba, Mpika and Mkhaika, recorded 100 percent utilisation of their CDF allocations. He added that while notable gains had been made, challenges remained in project delivery and loan repayments, which currently stood at about nine percent nationwide.

The CDF is administered by the Ministry of Local Government and Rural Development and is aimed at accelerating grassroots development through locally prioritised projects.

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