May 15, 2015
First, a County receives equitable share of at least 15 per cent of ordinary revenue raised by the National Government, which is deposited into the Consolidated Fund. The Controller of Budget is mandated by the Constitution under Article 206 (4) to ensure that this fund is utilised in accordance with the Law.
This money is paid into each County Government’s Revenue Fund,which is where all money raised or received by or on behalf of the County Government, including money raised from property rates, entertainment taxes, levies, fees or charges, is also paid into.
The Controller of Budget has the mandate and power under the Constitution to approve any withdrawal from the County Revenue Fund. The Equalization Fund, equivalent to one half per cent (0.5%) of all revenue collected by the National Government each year calculated on the basis of the most recent audited accounts of revenue approved by the National Assembly, is paid to selected marginalised counties.
This fund is used to provide basic services, including water, roads, health facilities and electricity in marginalised areas so as to bring the quality of these services in these areas to the level generally enjoyed by the rest of the nation. The County Goverments also receive revenue from loans, grants and profits from trading activities.