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County Assemblies will enjoy financial autonomy if a new bill is passed.

The County Public Finance Laws (Amendment) Bill, 2023 sponsored by Senate Deputy Speaker Kathuri Murungi (Meru) seeks to amend section 109 of the Public Finance Management Act, 2012 to establish a County Assembly Service Fund.

“There is a need to establish a County Assembly Service Fund under the Public Finance Management Act in each county in order to provide the much required financial independence for the 47 counties,” reads part of the bill.

Murungi proposes the establishment of an administrator of a County Assembly Fund who shall ensure that the earnings and accruals are retained in the Fund and spent only for the purposes for which it is established.

If passed, the administrator of a County Assembly Fund will arrange for the County Assembly Fund to be kept in the Central Bank of Kenya in an account to be known as the County Assembly Fund Account.
In addition, the administrator will also ensure all money authorized 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 ensure that at no time is the County Assembly Fund Account overdrawn and shall obtain the written approval of the Controller of Budget before withdrawing money from the County Assembly Fund Account,” the bill states.

It also seeks to provide for instances where the County Assemblies can be able to spend money in emergencies.

“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 of such money as may be allocated for that purpose from investments, fees, or levies administered by the county.

The funds withdrawn shall be used to defray administrative expenses of the County Assembly and for acquisition and maintenance of buildings, grounds and other assets of the County Assembly.

Kathuri argues that the principle of separation of powers requires that County Assemblies should be independent in the discharge of their functions.