The Office of the Controller of Budget (OCOB) released the Ward Development Fund Guidelines through Circular Number 26 of 2014 to assist counties in actualizing and operationalizing the fund. The Ward Development Fund (WDF) is designed to finance development projects at the ward level, ensuring that public funds are allocated efficiently and transparently.
📌 Key Provisions of the Ward Development Fund Guidelines
The guidelines cover the establishment, approval, operationalization, and administration of the fund. They also outline the roles of Members of the County Assembly (MCAs), the County Executive, and county residents, as well as monitoring, evaluation, and auditing of the fund.
1️⃣ Establishment of the Ward Development Fund
✔ A county department or entity identifies the need to establish the Ward Development Fund.
✔ The proposal is forwarded to the County Executive Member for Finance, who submits it to the County Executive Committee (CEC) for approval.
✔ Once approved, the County Executive Member for Finance drafts a County Bill or County Regulations to legally establish the fund.
2️⃣ Approval Process for the Ward Development Fund Bill or Regulations
✔ The County Executive Member for Finance submits the Bill/Regulations to the County Assembly for approval.
✔ Upon approval, the County Governor assents to the Bill and it is published in the Kenya Gazette, making it legally binding.
3️⃣ Operationalization & Administration of the Fund
✔ The County Executive Member for Finance appoints an Administrator to manage the Fund.
✔ The Administrator’s Key Responsibilities:
- Prepare financial statements for the fund.
- Operate a bank account for the fund (only one account per county).
- Submit quarterly financial reports to the County Treasury and the Controller of Budget.
✔ Project Implementation: The County Executive is responsible for executing projects funded under the WDF.
✔ Staffing Needs: The County Public Service Board handles staffing for fund administration.
4️⃣ Role of the Members of the County Assembly (MCAs) & Residents
✔ MCAs’ Role:
- Mobilize residents to identify priority projects annually.
- Ensure public participation in project selection.
- Monitor & provide oversight on fund allocation and project execution.
✔ Residents’ Role:
- Participate in project identification and decision-making to ensure funds meet community needs.
⚠️ Note: MCAs CANNOT be involved in the management or implementation of the fund due to the constitutional principle of separation of powers.
5️⃣ Role of the County Executive
✔ Implements the priority projects identified by MCAs and residents.
✔ Ensures projects are included in county planning documents (e.g., Annual Development Plans and County Fiscal Strategy Paper).
✔ No funds shall be spent outside the approved planning framework.
6️⃣ Monitoring, Evaluation & Auditing
✔ MCAs are responsible for oversight and monitoring project implementation.
✔ Audit Requirements: The Ward Development Fund Bill or Regulations must include provisions for auditing the Fund to ensure accountability and transparency.
📌 Summary of the Key Guidelines
✅ Counties must pass a Ward Development Fund Bill or Regulations before the fund becomes operational.
✅ The County Executive exclusively manages the Fund—MCAs cannot interfere in financial management or project implementation.
✅ Public participation is critical—county residents must identify priority projects for funding.
✅ MCAs provide oversight but do not handle funds directly.
✅ The County Treasury and Controller of Budget receive regular financial reports on fund expenditure.
📝 Final Thoughts
The Ward Development Fund is a decentralized approach to development, ensuring that each ward benefits from county resources. However, strict separation of powers, transparency, and accountability must be upheld to prevent mismanagement. Proper implementation, oversight, and auditing are essential to achieving the intended impact of the Fund. ✅
