There are different types of funds managed by county governments. Certain laws allow the county governments to establish and manage certain funds within their jurisdiction.
These laws include the Constitution (Chapter 12) and the Public Finance Management Act.
The types of funds managed by county governments are the County Revenue Fund, County Emergency Fund and the Ward Development Fund.
The County Revenue Fund in Kenya (or revenue fund for county governments in Kenya) exists under Article 207 of the Kenyan Constitution.
This article is under Chapter 12 of the Constitution on Public Finance. Section 109 of the Public Finance Management (PFM) Act expounds further on the Fund.
Article 207 says that the County Revenue Fund should be established to receive all money raised or received on behalf of the County Government.
However, this excludes any money that an Act of Parliament may exclude from being paid reasonably to the Fund.
The revenue fund for county governments resides at the Central Bank of Kenya. It may also be referred to as the County Exchequer Account. Each county government has a County Revenue Fund at the Central Bank of Kenya.
Read more about the County Revenue Fund.
Section 110 of the Public Finance Management Act establishes the County Emergency Fund in Kenya.
A County Executive Committee may, with the approval of the County Assembly, establish an emergency fund for the county government under the name “County Emergency Fund”.
The County Emergency Fund should consist fund of money from time to time appropriated (authorised) by the county assembly to the Fund by appropriation law.
The purpose of the County Emergency Fund in Kenya is to enable payments to be made in respect of a county when an urgent and unforeseen need for expenditure arises for which there is no specific legislative authority.
Read more about the County Emergency Fund.
The Ward Development Fund should enable the counties to finance projects at the ward level.
The County Executive should formulate the Bill or Regulations to operationalize and administrate the Ward Development Fund.
The Ward Development Fund should only come into operation upon approval of the Ward Development Fund Bill or Regulations by the County Assembly.
Only the County Executive should manage the Fund and Implement projects and programmes financed by the Fund.
Public participation is critical. County residents should identify priority projects that the Ward Development Fund should finance.
The MCAs should monitor and play oversight on the appropriation of the Fund and the implementation of projects financed by the Fund. They should also mobilize residents to identify priority projects for the Fund to finance.
Read more about the Ward Development Fund.