ADVOKS GLOBAL · KENYA
Public Finance Management Act
141. Obligations and restrictions with respect to county government borrowing
Edition: 2026-09-25 · In force
141. Obligations and restrictions with respect to county government borrowing
(1)In borrowing money, a county government shall ensure that its financing needs and payment obligations are met at the lowest possible cost in the market that is consistent with a prudent degree of risk, while ensuring that the overall level of public debt is sustainable.(2)A county government may borrow money only in accordance with this Act or any other legislation and shall not exceed the limit set by the county assembly.(3)A county government may borrow money in accordance with section 58, and only for purposes that are prescribed by regulations made under this subsection.(4)A public debt incurred by a county government is a charge on the County Revenue Fund, unless the County Executive Committee member for finance determines that all or part of the public debt that would otherwise be a charge on that Fund shall be a charge on another public fund established by that county government or any of its entities.(5)The County Executive Committee member for finance shall pay the proceeds of any loan raised under this Act into the County Revenue Fund or into any other public fund established by the county government or as the County Executive Committee member for finance may determine.(6)A County Executive Committee member for finance may establish such sinking fund or funds for the redemption of loans raised under this Act for the purposes of the county government or any of its entities as the County Executive Committee member for finance considers necessary.(7)A County Executive Committee member for finance may in accordance with national legislation on public procurement and disposal of assets—(a)appoint advisers, agents and underwriters for the purposes of raising loans; and(b)enter into agreements with those advisers, agents and underwriters as to the role to be undertaken by them and the remuneration to be paid to them.(8)Any expenses incurred in connection with borrowing by a county government shall be a charge—(a)on the County Revenue Fund; or(b)on such other county public fund established by the county government or any of its entities as the County Executive Committee member for finance may determine in accordance with regulations approved by the county assembly.(9)The costs, interests and principal payments made by the national government on behalf of the county concerning loans to the county government shall, together with the principal amount, be reimbursed to the national government by the county government.