The County Emergency Fund is established under Section 110 of the Public Finance Management (PFM) Act to provide county governments with a financial mechanism to respond to urgent and unforeseen expenses. This ensures that counties can address emergencies without waiting for budget reallocations or approvals.
📌 Key Purpose of the County Emergency Fund
✅ Covers urgent, unforeseen expenditures where no prior budgetary allocation exists.
✅ Provides emergency financial support to mitigate disasters or crises affecting human life, welfare, or the environment.
✅ Prevents delays in responding to emergencies, avoiding prolonged public hardship.
📌 Conditions for Using the County Emergency Fund
The County Executive Committee Member (CEC) for Finance can only approve payments from the fund if:
1️⃣ The need for funding is urgent and cannot wait until the next budget cycle.
2️⃣ The expense is meant to alleviate damage, loss, hardship, or suffering.
3️⃣ The damage is small-scale and limited to the county.
4️⃣ The event threatens human life, welfare, or the environment.
🛑 Limitations:
🔹 Payments cannot exceed 2% of total county revenue (except in the first year).
🔹 The County Assembly must approve any payments within two months.
📌 How the Fund is Managed
✅ The County Executive Committee (CEC) for Finance is responsible for managing the fund.
✅ The fund is kept in a separate bank account.
✅ Payments must follow operational guidelines set by Parliament and disaster management laws.
📌 Summary Table: County Emergency Fund
| Aspect | Details |
|---|---|
| Established By | Public Finance Management (PFM) Act, Section 110 |
| Purpose | Covers urgent, unforeseen county emergencies |
| Who Manages It? | County Executive Committee (CEC) Member for Finance |
| Conditions for Use | Must be urgent, unforeseen, and limited to the county |
| Maximum Spending | 2% of previous year’s county revenue |
| Approval Requirement | County Assembly approval required within 2 months |
| Examples of Use | Natural disasters, disease outbreaks, infrastructure collapse |
📌 Conclusion
The County Emergency Fund is essential for quick response to disasters and emergencies at the county level. It ensures counties can act swiftly to protect human life, welfare, and the environment without waiting for lengthy budget approval processes. 🚀
