The Constitution of Kenya establishes several public funds to ensure efficient financial management at both the national and county levels. These funds are managed by the National Treasury and County Treasuries, respectively.
1️⃣ National Public Funds
These funds are managed by the National Treasury to support the operations of the national government.
📌 1. Consolidated Fund (Article 206)
✅ Serves as the main bank account for the national government.
✅ All money raised or received by the national government is deposited here, except for:
- Funds legally excluded by an Act of Parliament.
- Funds retained by state organs for specific expenses (Appropriations in Aid).
✅ Managed by the National Treasury.
👉 Purpose: To finance national government operations, salaries, and development projects.
📌 2. Equalization Fund (Article 204)
✅ Receives 0.5% of the most recent national revenue (as per Auditor-General’s audited accounts).
✅ Used to provide basic services such as:
- Water 💧
- Roads 🚧
- Health facilities 🏥
- Electricity ⚡
✅ Aims to bridge the development gap between marginalized areas and the rest of the country.
👉 Purpose: Improve the living standards in underdeveloped regions by enhancing infrastructure and services.
📌 3. Contingencies Fund (Article 208)
✅ Used for urgent and unforeseen expenses that lack prior budget allocation.
✅ Managed by the Cabinet Secretary for Finance.
✅ Funds are drawn only when necessary and require Parliamentary approval for replenishment.
👉 Purpose: Respond to national emergencies such as natural disasters or unexpected government expenses.
2️⃣ County Public Funds
These funds are managed by the County Treasuries to support county governments.
📌 4. County Revenue Fund (Article 207)
✅ All county government revenue is deposited here.
✅ Funds come from:
- National government allocations.
- Own-source revenue (property rates, entertainment tax, etc.).
✅ County Treasury manages the fund.
👉 Purpose: To finance county development projects and service delivery.
📌 5. County Emergency Fund (PFM Act, Section 110)
✅ County governments can establish an emergency fund with County Assembly approval.
✅ Used for urgent, unforeseen county expenses.
✅ Managed by the County Executive Committee Member for Finance.
👉 Purpose: To respond to emergencies such as drought, floods, or disease outbreaks at the county level.
Summary Table: Public Funds in Kenya
| Fund | Constitutional Article | Level of Government | Purpose |
|---|---|---|---|
| Consolidated Fund | Article 206 | National | Main account for national government funds. |
| Equalization Fund | Article 204 | National | Provides basic services to marginalized areas. |
| Contingencies Fund | Article 208 | National | Covers urgent, unforeseen national expenses. |
| County Revenue Fund | Article 207 | County | Main account for county government funds. |
| County Emergency Fund | PFM Act, Sec 110 | County | Covers urgent, unforeseen county expenses. |
Conclusion
✅ These public funds are constitutionally established to ensure accountability and effective financial management at both national and county levels.
✅ The National Treasury manages funds at the national level, while County Treasuries oversee county funds.
✅ Transparency and oversight mechanisms ensure that the funds are used efficiently and for their intended purpose. 🚀💰
