Types of Funds Managed by the National Government in Kenya
- Author: Gĩthĩnji
- Updated on:
There are different types of funds managed by the national government in Kenya. Certain laws allow the national government to establish and manage certain funds within its jurisdiction.
These laws include the Constitution (Chapter 12) and the Public Finance Management Act.
Table of Contents
Funds Managed by the National Government
The types of funds managed by the national government are the Consolidated Fund, Contingencies Fund, and Equalisation Fund.
Article 206 of the Constitution establishes the Consolidated Fund in Kenya.
The Consolidated Fund acts as the main bank account for the national government. The Public Finance Management (PFM) Act expounds on the Consolidated Fund.
All money raised or received by or on behalf of the national government should be paid to the Consolidated Fund, except in certain cases.
Read more about the Consolidated Fund.
Article 208 of the Kenyan Constitution establishes the Contingencies Fund.
The Contingencies Fund exists if the Cabinet Secretary responsible for finance is satisfied that there is an urgent and unforeseen need for expenditure for which there is no other authority.
Read more about the Contingencies Fund.
Article 204 of the Kenyan Constitution establishes the Equalization Fund which is 0.5% of all the revenue collected by the national government each year.
This amount is calculated based on the most recent (Auditor-General) audited accounts of revenue received, as approved by the National Assembly
The national government should use the Equalisation Fund only to provide basic services.
Read more about the Equalisation Fund.