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.
The County Executive Committee member for finance should administer the county government Emergency Fund for the county government in accordance with a framework and criteria approved by the County Assembly.
The County Executive Committee member for finance should establish and maintain a separate (bank) account into which all money appropriated to the Emergency Fund should be paid.
The County Executive Committee member for finance may make payments from the county government’s Emergency Fund:
- only if they are satisfied that there is an urgent and unforeseen need for expenditure for which there is no legislative authority, and
- should be in accordance with operational guidelines made under regulations approved by Parliament and the law relating to disaster management.
There is an urgent and unforeseen event for expenditure if the County Executive Committee member for finance, guided by regulations and relevant laws, establishes that –
- payment not budgeted for cannot be delayed until a later financial year without harming the general public interest;
- payment is meant to alleviate the damage, loss, hardship or suffering which may be caused directly by the event; and
- the damage caused by the event is on a small scale and limited to the county.
The unforeseen event is one which –
- threatens damage to human life or welfare; or
- threatens damage to the environment.
The County Executive Committee member for finance may not, during a financial year, make a payment from the Emergency Fund exceeding two per cent of the total county government revenue as shown in that county government’s audited financial statements for the previous financial year, except for the first year.
The County Executive Committee member for finance should seek approval of the county assembly within two months after payment is made from the Emergency Fund.
For more about the County Emergency Fund, see Sections 110-115 of the Public Finance Management Act.