Members of County Assemblies (MCAs) have gained access and control of a portion of the equitable share of revenues and county levies, following the signing of a new law that has introduced County Assembly Funds (CAFs).
The County Public Finance Laws (Amendment) Act, 2023 allows county assemblies to appropriate cash from official county accounts to be paid to CAFs and get a portion of levies and fees imposed by the devolved units, providing financial autonomy from governors.
County Assemblies are also set to have independent management of the CAFs with county clerks administering the kitty, a departure from the past when assemblies relied on county executives for funding.
Following the signing of the law by President William Ruto on Wednesday, each of the 47 county assemblies is set to have a fund for management of their operations, ending a long reliance on funding from county executives, which some governors have exploited to starve them of funding.
The new law empowers county assemblies to appropriate monies from the County Revenue Fund (CRF) to be paid into the CAF, as other funding comes from fees and levies charged by the regional government.
“There shall be paid to the CAF such monies as may be appropriated by the county assembly from the CRF established for each county and such money as may be allocated for that purpose from investments, fees or levies administered by the county,” the law says.
With county assembly clerks charged with the administration of the CAFs, this offers MCAs direct access to funds from OSR and the equitable share of national revenues, which has not happened since devolution started.
MCAs have been relying on allocations by respective governors through budgets led by county treasuries, which have often triggered disputes between county assemblies and executives.
In a number of instances, MCAs delayed the passing of county budgets due to disputes with governors.
The County Public Finance Laws (Amendment) Bill, 2023, was sponsored by Meru Senator Kathuri Murungi, and the Senate passed it in April, before MPs subsequently okayed it in the National Assembly last month.
“The primary purpose of the fund shall be to defray the administrative expenses of a respective county assembly and to facilitate the acquisition of assets, such as land and buildings, by a county assembly,” the Senate said yesterday, in a brief following its signing.
The Senate noted that the law currently requires counties to have CAFs, but it lacks comprehensive provisions on management of the fund, sources of the fund, and the process of requisition of cash from the fund.
The new law now requires that the Controller of Budget (COB) approve any withdrawals from the CAF before money is used.
The fund will be housed at the Central Bank and is expected to address issues that have caused pending bills by county assemblies, since county assembly clerks will be required to settle bills immediately they fall due.
“The administrator of a CAF shall ensure that all money authorized to be paid by the county assembly for a public purpose is paid from that account without undue delay,” the law says.
County assemblies had accrued pending bills to the tune of Sh2.53 billion by the end of March 2025, led by Kakamega (Sh398.5 million), Nairobi (Sh373.2 million), and Marsabit (Sh215.3 million).
