County governments manage various funds within their jurisdiction to facilitate financial management, development projects, and emergency responses. These funds are established under Chapter 12 of the Constitution and the Public Finance Management (PFM) Act.
1. County Revenue Fund (CRF)
✔ Legal Basis: Established under Article 207 of the Constitution and Section 109 of the PFM Act.
✔ Purpose: This is the main bank account for the county government, where all revenue collected or received on behalf of the county is deposited.
✔ Management: The funds are kept at the Central Bank of Kenya (CBK) under each county’s County Revenue Fund account (also known as the County Exchequer Account).
✔ Exceptions: Some money may be excluded from being deposited into the CRF by an Act of Parliament (e.g., donor funds designated for specific projects).
✔ Usage: Funds from the CRF can only be withdrawn with approval from the Controller of Budget and must be used in line with county laws and budget priorities.
🔗 Read more about the County Revenue Fund.
2. County Emergency Fund
✔ Legal Basis: Established under Section 110 of the PFM Act.
✔ Purpose: The County Emergency Fund is designed for urgent and unforeseen expenses, such as natural disasters, disease outbreaks, or emergencies that require immediate financial response.
✔ Management:
- The County Executive Committee (CEC) may establish the fund, but only with approval from the County Assembly.
- The fund consists of money allocated by the County Assembly through an appropriation law.
✔ Usage: Funds can be disbursed without prior legislative approval in response to emergencies, but expenditures must be reported to the County Assembly within two months.
🔗 Read more about the County Emergency Fund.
3. Ward Development Fund (WDF)
✔ Legal Basis: Each county formulates a Ward Development Fund Bill or Regulations to govern the fund.
✔ Purpose: The Ward Development Fund (WDF) ensures that development projects at the ward level receive funding, promoting equitable resource allocation across all wards in a county.
✔ Management:
- County Executive manages the fund and is responsible for project implementation.
- Members of the County Assembly (MCAs) do not control funds but provide oversight and ensure public participation in selecting projects.
✔ Public Participation: - Residents of each ward identify priority projects for funding.
- The fund finances projects such as road infrastructure, water supply, health facilities, and education programs.
🔗 Read more about the Ward Development Fund.
Conclusion
County governments manage funds to ensure financial efficiency, emergency response, and development at the grassroots level. Public participation, oversight, and accountability are crucial in ensuring these funds are used appropriately to benefit local communities.
