The County Public Finance Laws (Amendment) Bill, 2023
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
Creation of County Assembly Funds
Inserts Section 109A into the Public Finance Management Act, 2012, which establishes a dedicated County Assembly Fund for each county. The fund will be kept in an account at the Central Bank of Kenya, with the Clerk of the County Assembly acting as the administrator.
Controller of Budget Gets Internet Viewer Rights
Inserts Section 119A into the Public Finance Management Act, 2012, granting the Controller of Budget read-only internet banking viewer rights to all bank accounts operated by county executives, county assemblies, and other county government entities.
Strict Deadlines for County Treasury Disbursements
Inserts Section 109E, requiring the County Treasury to disburse monthly operational monies to the County Assembly Fund no later than the fifteenth day from the commencement of each month, based on an approved schedule.
Mandatory Repayment of Unspent Funds
Amends Section 136 of the Public Finance Management Act, 2012, requiring county entities holding unspent appropriated money withdrawn from the County Exchequer or County Assembly Fund at the end of the financial year to return the funds and submit a refund statement to the Controller of Budget.
Bill No.
Bill No. 39 of 2023
Gazette No.
Supplement No. 159 of 2023
Background
The County Public Finance Laws (Amendment) Bill, 2023 aims to streamline public financial management at the county level by establishing structured procedures for funding county assemblies and enhancing independent oversight of county bank accounts.
Key Amendments
County Assembly Services Act (No. 24 of 2017)
- Section 2: Deletes the definition of the word "fund".
- Sections 31 & 32: Deletes Subsection (5) of Section 31 and Subsection (3) of Section 32.
- Section 34: Deletes Section 34 of the Act entirely.
Public Finance Management Act (No. 18 of 2012)
- Section 109A (New): Establishes the County Assembly Fund in each county to receive monies appropriated by the County Assembly and any related investments or levies.
- Section 109B (New): Restricts the use of the fund to defraying administrative expenses and acquiring/maintaining assets of the County Assembly.
- Section 109C (New): Mandates that all receipts, savings, and accruals be retained in the fund at the end of each financial year.
- Section 119A (New): Authorizes internet banking viewer rights for the Controller of Budget over all county government entity bank accounts.
- Section 136: Amends the requirements for returning unspent funds to include the new County Assembly Fund Account alongside the County Exchequer Account.
New Obligations
- Administration of the Fund: The Clerk of the County Assembly must manage the fund, ensure that the accounts at the Central Bank of Kenya are not overdrawn, and secure written approval from the Controller of Budget before making any withdrawals.
- Reporting Obligations: The administrator of the County Assembly Fund must submit financial reports to the Commission on Revenue Allocation, with copies forwarded to the Controller of Budget.
- Disbursement Timelines: The County Treasury is obligated to disburse allocated monies to the County Assembly Fund by the 15th day of every month.
- Surrender of Balances: County government entities holding unspent funds withdrawn from the County Exchequer or County Assembly Fund must return those balances at the close of the financial year and submit a formal refund statement to the Controller of Budget.
No updates tracked yet
Updates will be visible here once they are approved and applied to this bill.