Types of Funds Managed by County Governments in Kenya

County governments manage various funds to ensure the effective administration and development of their jurisdictions. These funds are established under the Kenyan Constitution (Chapter 12 on Public Finance) and the Public Finance Management (PFM) Act.

Funds Managed by County Governments

County Revenue Fund
- Established under Article 207 of the Constitution and Section 109 of the PFM Act.
- Acts as the main account for all revenue collected or received on behalf of the county government.
- Exemptions: Some funds may be excluded from the County Revenue Fund through an Act of Parliament.
- Management: Each county’s Revenue Fund is held at the Central Bank of Kenya (CBK) and is also referred to as the County Exchequer Account.
County Emergency Fund
- Established under Section 110 of the PFM Act.
- The County Executive Committee, with County Assembly approval, can establish a County Emergency Fund.
- Purpose: To cater for urgent and unforeseen expenses that lack specific legislative approval.
- Funding Source: Money is allocated to the Emergency Fund by the County Assembly through appropriation laws.
Ward Development Fund
- Aimed at financing development projects at the ward level.
- The County Executive formulates the necessary Bill or Regulations to operationalize the Fund.
- Activation: The Fund becomes operational only after the County Assembly approves the Ward Development Fund Bill or Regulations.
- Implementation & Oversight:
  - County Executive: Manages the Fund and implements projects.
  - Public Participation: Residents identify priority projects for funding.
  - Members of County Assembly (MCAs): Provide oversight, mobilize public participation, and monitor project implementation.