Sponsored by Meru Senator Kathuri Murungi, the Bill, now law, effectively amends the Public Finance Management Act to provide for the establishment of a County Assembly Fund (CAF) in each of Kenya’s 47 counties.
The Senate passed the Bill in April this year, with 27 senators voting in support and not a single vote in opposition or abstention. It was then forwarded to the National Assembly for concurrence, as required by Article 110(4) of the Constitution. This provision stipulates that when a Bill concerning county governments is passed by one House, the Speaker must refer it to the other for approval.
The new law ensures that Members of County Assemblies (MCAs) will have guaranteed financial resources to carry out their oversight duties. “Most of the time there is no money in county assemblies. When they make requisitions, they are unable to get the funds needed for their work,” Senator Kathuri told the Senate. He argued that county assemblies should be treated like the two Houses of Parliament, which receive their budget allocations through the Parliamentary Service Commission (PSC) without having to depend on the Executive.
Currently, county assemblies rely on county executives for their funding, often leading to delays. The National Treasury may delay disbursing funds to the counties, and county executives may further withhold funds from assemblies, hampering their operations.
Under the County Government Act, county assembly budgets must be no less than 7% of a county’s total revenue or twice the personnel emoluments, whichever is lower. The CAF will separate the operational budgets of county assemblies from those of county executives, shielding MCAs from the political control of governors over financial matters.
The law designates the Clerk of the County Assembly as the administrator of the Fund, tasked with ensuring that all earnings and accruals remain in the Fund and are spent solely for its intended purposes. By granting this authority, currently exercised by the county executive, to the Clerk, the law further strengthens the independence of the assemblies.
The Clerk will now report to the County Assembly Service Board (CASB) and must seek approval from the Controller of Budget (COB) before withdrawing any money from the Fund, as stipulated in Clause 6(7).
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