The County Public Finance Laws (amendment) Bill (senate Bill No. 39 Of 2023)

REPUBLIC OFKENYA PARLIAMENT

SENATE BILLS

(Bill No. 39 of 2023)

THE COUNTY PUBLIC FINANCE LAWS (AMENDMENT) BILL, 2023

(A Bill published in the Kenya Gazette Supplement No. 159 of 1st September, 2023 and passed by the Senate, with amendments, on 15th April, 2025)

THECOUNTYPUBLICFINANCELAWS (AMENDMENT)BILL,2023

A Bill for

ANACTofParliamenttoamendtheCountyAssembly Services Act and the Public Finance Management Act; and for connected purposes.

ENACTEDbytheParliamentofKenya,asfollows-

• 1.This Act may be cited as the CountyPublic Finance Laws (Amendment) Act,2023.

2. Section 2 of the County Assembly Services Act is amended by deleting the definition of the word "fund".

• 3.Section 31of the CountyAssemblyServices Act is amended by deleting subsection (5).
• 4.Section32of the CountyAssemblyServicesAct is amended by deleting subsection (3).

5. The County Assembly Services Act is amended by deleting section 34.

• 6.The Public Finance Management Act is amended by inserting thefollowingnew sectionsimmediatelyafter section 109-

Establishment of County Assembly Fund.

• 109A.(l) There is established for each county a fund to be known as the County Assembly Fund.
• (2) There shall be paid into the County AssemblyFund—
• (a) such monies as maybe appropriated bytheCountyAssemblyfromthe CountyRevenue Fund established for each county; and

Short title.

Amendment of section 2 of No. 24 of2017.

Amendment of section31of No.24 of 2017.

Amendment of section31of No.24 of 2017.

Deletion of section34of No.24 of 2017.

Insertion ofnew sections in No. 18 of2012.

• (b) such money as may be allocated for that purpose from investments, fees, or levies administered by the County.

(3) The Clerk of a County Assembly shall be the administrator of the County Assembly Fund.

(4) 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.

(5) The administrator of a County Assembly Fund shall—-

• (a)arrange for theCountyAssembly Fund to bekept in the Central Bank of Kenya in an account to be known as the County AssemblyFund Account; and
• (b) ensure that all money authorised to be paid by the County Assembly for a public purpose is paid from that account without undue delay.

(6) The administrator of a County Assembly Fund shall ensure that at no time is the County AssemblyFund Account overdrawn.

(7) 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 under the authority of—

• (a) an Act of the County Assembly that appropriates money for a public purpose;
• (b) an Act of Parliament or county legislation that imposes a charge on that County Assembly Fund; or
• (c) this Act in accordance with sections

Utilization of the Fund

Monicstobe retained in the punI

134 and 135.

• (8) The approval of the Controller of Budget towithdrawmoneyfromaCountyAssembly Fund,togetherwithwritteninstructionsfrom the administrator of the Fund requesting for the withdrawal, is sufficient authority for the approved bank where that CountyAssembly Service Fund Account is held to pay amounts from this accountin accordance withthe approval and the instructions.
• (9) The administrator of a County Assembly Fund shall ensure that all payments made from the CountyAssemblyFund subject to approvals from theControllerofBudgetshallbestrictlyin line with the requisitions made and for the purpose requested.
• (10) Financial reports shall be submitted to theCommission onRevenueAllocationwitha copy to the Controller of Budget.

109B. The Fund shall be used -

• (a) to defray the administrative expenses of the County Assembly; and
• (b) for the acquisition and proper maintenance of buildings, grounds and other assets of the County Assembly; and
• 109C. All receipts, savings and accruals to and thebalance of the CountyAssemblyFund at the end of each financialyear shall be retained in theCountyAssemblyFund andappliedin accordancewiththeConstitution andthisAct.

Insertion of new section in No. 18of2012

Amendmentof section134 of No.18 of2012.

Amendment of section136of No.18 of 2012.

Authority to incur expenditure.

Disbursement to countyassembly fund.

• 109D. (1) The Clerk of a County Assembly may, in writing, authorize a member of staff of the County Assembly to incur expenditure for the efficient management of the CountyAssembly.
• (2) The authority to incur expenditure shall be accompanied by guidelines on its usage.
• 109E. (1) 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.
• (2) The disbursement referred to in subsection (1) shall be done in accordance with a schedule prepared by the County Treasury and submittedto theCountyAssemblyfor approval together with the County Appropriation Bill under section 129(7).
• 7.ThePublic Finance ManagementAct is amended by inserting the following new section immediately after section 119

Accessto Internet Banking user rights.

• 119A. The Controller of Budget shall have viewerrights access toallbankaccounts maintainedbythecountyexecutive,thecounty assembly and all other county government entities.
• 8.Section 134 of thePublic Finance Management Act is , m s ( sns Assembly Fund"immediately after the words"County Revenue Fund".

9. Section 136 of the Public Finance Management Act is amended by deleting subsection (2) and substituting therefor the followingnewsubsection—

• (2) If, at the end of a financial year, a county

withdrawnfrom the CountyExchequer Account or the County AssemblyFund Account but hasnot been spent, it shall repay the unspent money to the County Exchequer Account or the County AssemblyFund Account as the casemaybe and prepare a refund statementwhich shall be forwarded to the Controller of Budget.

I certify that this printed impression is a true copy of the Bill as passed by the Senate on Tuesday, 15th April, 2025.

ClerkoftheSenate

Endorsed for presentation totheNationalAssemblyin accordancewith the provisions of standing order 161(1) of the Senate Standing Orders.

SpeakeroftheSenate