The County Public Finance Laws (Amendment) Bill, 2023 sponsored by Senate Deputy Speaker Kathure Murungi now awaits introduction in the House for first reading.
“The bill seeks to amend Section 109 of the Public Finance Management Act, 2012 to establish a County Assembly Service Fund in order to have monies for the running of county assemblies being separated from the county treasury,” it states.
The bill also seeks to provide for instances where the county assemblies can spend money in emergencies.
The proposed law establishes for each county a fund to be known as the County Assembly Fund where monies from the County Revenue Fund shall be paid.
“The county treasury shall, at the beginning of every month, and in any event not later than the fifteenth day from the commencement of the month, disburse monies to the County Assembly Fund for the expenditure of the following month,” the bill states.
The fund shall also receive any grants, gifts, donations or bequests such money as may be allocated for that purpose from investments, fees, or levies administered by the county.
The clerk of a county assembly shall be the administrator of the County Assembly Fund.
“The administrator of a County Assembly Fund shall ensure that the earnings and accruals of the fund are retained in the fund and spent only for the purposes for which the fund is established,” it states.
The administrator of a County Assembly Fund shall arrange for it to be kept in the Central Bank of Kenya in an account to be known as the County Assembly Fund Account.
The administrator shall also ensure that all money authorised to be paid by the county assembly for a public purpose is paid from that account without undue delay.
The administrator of a County Assembly Fund shall obtain the written approval of the Controller of Budget before withdrawing money from the County Assembly Fund Account.
The funds withdrawn shall be used to defray the administrative expenses of the county assembly and for the acquisition and proper maintenance of buildings, grounds and other assets of the county assembly.
Kathure argues that the principle of separation of powers requires that county assemblies ought to be independent in the discharge of their functions.
However, the situation currently is that county assemblies submit their requisitions for funds to the Controller of Budget and thereafter rely on the county treasury to disburse funds to them.
“The reliance on the county executive for finances occasions delays and other conflicts between the two arms of government,” he said.
“In this regard, the financial autonomy of county assemblies is lacking as they rely on the whims and caprices of their respective county executives and as such cannot be said to be independent,” he added.
Last month, President William Ruto pledged to lobby his troops in Parliament to amend the Public Finance Management (PFM) Act, 2012, to enable them get their funds directly from the Treasury.
“That is an aspiration and a concept that I share, and we will work with the necessary stakeholders and institutions to make sure that the Senate provides the framework for the independence of our county assemblies so that they can have their independent votes,” Ruto said.
