Kenyan Constitution, Chapter Twelve, Part 1, Article 201 to 203

By Juma / November 22, 2016




Public Finance

Part 1: Principles and framework of public finance

Article 201: Principles of public finance

The following principles shall guide all aspects of public finance in the Republic–

(a) there shall be openness and accountability, including public participation in financial matters;
(b) the public finance system shall promote an equitable society, and in particular—

(i) the burden of taxation shall be shared fairly;
(ii) revenue raised nationally shall be shared equitably among national and county governments; and
(iii) expenditure shall promote the equitable development of the country, including by making special provision for marginalized groups and areas;

(c) the burdens and benefits of the use of resources and public borrowing shall be shared equitably between present and future generations;
(d) public money shall be used in a prudent and responsible way; and
(e) financial management shall be responsible, and fiscal reporting shall be clear.

Article 202: Equitable sharing of national revenue

(1) Revenue raised nationally shall be shared equitably among the national and county governments.

(2) County governments may be given additional allocations from the national government’s share of the revenue, either conditionally or unconditionally.

Article 203: Equitable share and other financial laws

(1) The following criteria shall be taken into account in determining the equitable shares provided for under Article 202 and in all national legislation concerning county government enacted in terms of this Chapter–

(a) the national interest;
(b) any provision that must be made in respect of the public debt and other national obligations;
(c) the needs of the national government, determined by objective criteria;
(d) the need to ensure that county governments are able to perform the functions allocated to them;
(e) the fiscal capacity and efficiency of county governments;
(f) developmental and other needs of counties;
(g) economic disparities within and among counties and the need to remedy them;
(h) the need for affirmative action in respect of disadvantaged areas and groups;
(i) the need for economic optimisation of each county and to provide incentives for each county to optimise its capacity to raise revenue;
(j) the desirability of stable and predictable allocations of revenue; and
(k) the need for flexibility in responding to emergencies and other temporary needs, based on similar objective criteria.

(2) For every financial year, the equitable share of the revenue raised nationally that is allocated to county governments shall be not less than fifteen per cent of all revenue collected by the national government.
(3) The amount referred to in clause (2) shall be calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.



About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: [email protected]

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