The main objective of the CDP 1 was to assist Kenya in achieving economic recovery and sustainable economic growth, increased employment creation and poverty alleviation.  Through the CDTF, the programme sought to support community efforts in poverty alleviation through provision of contributory investment funds towards community driven projects. 

CDP-1 had two funding categories, which also specified the funding ceilings, as follows:

1. ECU 50,000 (Approx. Kshs 3million): - being the ceiling for smaller scale, non-integrated community projects which focus on a specific problem and could be implemented and completed in a single phase.  This category of projects must have been completed within a period of 12 months.
2. ECU 300,000 (Approx. Kshs 18 milliom): -  being the ceiling for integrated or cluster projects of a larger scale that could require to be implemented in more than one phase.  It was a requirement that each implementation phase for such projects be broken down to no more than 12 months and would have clearly defined and quantifiable annual targets.