County governments in Kenya manage several types of funds, which are established and regulated by specific legal provisions, including Chapter 12 of the Constitution and the Public Finance Management (PFM) Act. The primary funds under county government management are the County Revenue Fund, County Emergency Fund, and the Ward Development Fund.
County Revenue Fund: Defined by Article 207 of the Constitution and Section 109 of the PFM Act, this fund is meant to consolidate all revenues collected or received by the county government, except for those monies exempted by parliamentary acts. Managed at the Central Bank of Kenya, it’s also known as the County Exchequer Account, where each county has its own dedicated fund.
County Emergency Fund: Created under Section 110 of the PFM Act, this fund allows for the establishment of a financial reserve, approved by the County Assembly, to address urgent and unexpected expenditure needs within the county, for which there is no existing legislative allocation of funds.
Ward Development Fund: This fund is designed to support and finance projects at the ward level, ensuring local development initiatives are catered for. The operational framework and administration of this fund are set by the County Executive through specific Bills or Regulations, which require the approval of the County Assembly. The management of this fund is the responsibility of the County Executive, which also oversees the implementation of the financed projects and programs. Moreover, the involvement of county residents and the oversight role of Members of County Assembly (MCAs) are crucial for prioritizing and monitoring the projects funded and implemented under this scheme.
