Sources of finance for county governments.

Sources of finance for county governments in Kenya

a)  The main source of funding for many counties is their equitable share from 15% of the national budget.

b)  Conditional and unconditional grants. Unconditional Grants are funds allocated by the national government without conditions regarding their use. Conditional grants are the funds allocated by the national government for funding of specific projects and programmes. They include;

~  The Equalization Fund for provision of basic services like water, health
      services, electricity and roads in marginalized areas.

~  The Contingencies Fund to carter for urgent and unforeseen circumstances

c)  Counties’ own revenues. Counties have the power to collect property rates, impose
      taxes on entertainment, and impose fees and charges for services they render to
      people and any other tax that Parliament permits them to impose.

d)  Borrowing, where the national government guarantees the loan or with the approval of the county assembly.

e)  Grants and donations


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