Public finance

How public money works

Public services are funded mainly by taxes and other revenues. This page explains the big picture for citizens — not how to file your personal tax return.

Where money comes from

The national government raises revenue through taxes administered by the Kenya Revenue Authority (KRA) and other sources. Counties receive a constitutional share of nationally raised revenue and may collect local revenue such as property rates and certain fees. The framework is in Chapter 12 — Public finance.

For your own tax account, see money and tax.

Budgets

Each year, the national government prepares a budget that Parliament considers. Counties prepare county budgets through their assemblies. Budgets allocate money to ministries, agencies and county departments for wages, projects and services.

Published budget documents and budget policy statements are the authoritative sources for figures. Summaries on news sites can be incomplete.

Sharing revenue with counties

The Commission on Revenue Allocation (CRA) recommends how revenue should be shared vertically (national vs counties) and horizontally (among the 47 counties). Parliament makes the division of revenue decisions required by the Constitution. Additional conditional grants may support specific programmes.

Oversight

Controller of Budget — authorises withdrawals from public funds according to law and reports on budget implementation
Auditor-General — audits public accounts and reports to Parliament and the public
Parliament and county assemblies — oversight through committees and budget approval
National Treasury and county treasuries — day-to-day public financial management within the law

Public participation

The Constitution expects public participation in budgeting and other governance processes. Counties and national institutions publish invitations for input at different stages — check official notices.