ADVOKS GLOBAL · KENYA
Public Finance Management Act
107. County Treasury to enforce fiscal responsibility principles
Edition: 2026-09-25 · In force
107. County Treasury to enforce fiscal responsibility principles
(1)A County Treasury shall manage its public finances in accordance with the principles of fiscal responsibility set out in subsection (2), and shall not exceed the limits stated in the regulations.(2)In managing the county government’s public finances, the County Treasury shall enforce the following fiscal responsibility principles—(a)the county government’s recurrent expenditure shall not exceed the county government’s total revenue;(b)over the medium term a minimum of thirty percent of the county government’s budget shall be allocated to the development expenditure;(c)the country government’s expenditure on wages and benefits for its public officers shall not exceed a percentage of the county government’s total revenue as prescribed by the County Executive member for finance in regulations and approved by the County Assembly;(d)over the medium term, the government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure;(e)the county debt shall be maintained at a sustainable level as approved by county assembly;(f)the fiscal risks shall be managed prudently; and(g)a reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future.(2A)Pursuant to Articles 201 and 216 of the Constitution and notwithstanding subsection (2), the Commission on Revenue Allocation shall recommend to the Senate the budgetary ceilings on the recurrent expenditures of each county government.(3)For the purposes of subsection (2)(d), short term borrowing shall be restricted to management of cash flows and shall not exceed five percent of the most recent audited county government revenue.(4)Every county government shall ensure that its level of debt at any particular time does not exceed a percentage of its annual revenue specified in respect of each financial year by a resolution of the county assembly.(5)The regulations may add to the list of fiscal responsibility principles set out in subsection (2).