It’s the money which the government raises from various sources while expenditure is the money which the government spends on it is operations and development. And gided by:-

Openess and accountability including public participation.

Sharing the burden of taxation fairly.

Sharing the revenue equitability among national and county government.

Using public money in a prudent and responsible way.

Having a clear responsible method of financial management.


It’s the estimate of government revenue and expensive for the ensuring fiscal year.

The amount of revenue the government requires and hopes to raise sources for government revenue.

The projects which the government intends to spend.


  • Enabling government to source revenue.
  • Enables government to identify ways in which to spend revenue.
  • It enables government prioritize development needs.
  • Provides valuable information to people interested in investing in the country.
  • Creates confidence among foreign countries like donors and IMF.
  • Government can assess the performance in the previously your and improve on it.
  • Ensure balance in the country’s revenue


a) National Government

  • Charges for services like water, health and electricity
  • Fine charged in court.
  • Insurance of licenses like trade and driving
  • Imposition of direct taxes like sales, excise and customs
  • Profits from parastatals  and government shares and companies
  • Rent of the government buildings.
  • Domestic borrowing which is done through sale of government bunds and Treasury Bills.
  • Grants from friendly countries.


  • Allocations from the national government kitty
  • Charges for services like parking fees.
  • Revenue fund for each county government.
  • Properly rats on the county property.
  • Tax imposition.
  • Profile from county investment.


Capital expenditure and recurrent expenditure.


This is money spent on new public projects during a particular financial year like construction of roads, dams, railways and purchase of vehicles and machinery.


This is money spent on a regular basis through but a given financial year like payment of salaries, repair and maintenance of buildings roads and equipment and purchase of drugs and stationery.


The National government spends money in the following

Capital Expenditure

Construction of national infrastructure

Financing national development, projects like electricity generation.

Construction of higher education institutions.

Construction of national referral health facilities.

Recurrent Expenditure

Paying of salaries of state officer.

Repairing and maintaining natural infrastructure.

Establishment and maintainace of security organs

Serving external and domestic debts.

Maintenance of foreign embassies

Remitting funds to international organization like U.N.

B) County Government

a) Capital Expenditure

Maintance and repair of county infrastructure.

Payment of salaries of county employees.

Purchase of drugs, stationery, funds and lubricants

Servicing of loans incurred by county government.

Collection of refuse and solid waster disposal

Management of Public Finance

National Government

A budget is made to show expenditure

Parliament passes legislation prescribing the terms which the national give may borrow many.

Cabinet secretary in charge of finance reports to the relevant committee on the amount of debt use, servicing and progress of repayment.

Parliament passes legislation to ensure expenditure control and transparency.

The C.S for finance has power to temporarily stop the transfer of funds to a state organ in the event of mismanagement.

The controller of budget surprises implementation of the budget of the natural government.

The mediator-general audits government ministries and departments and within six months after the end of a financial year submits a report in parliament.

The principle secretaries are accountable of the national Assembly for financial management within their ministries.

The Kenya anti – corruption authority investigates and recommends for prosecution of public officials who mismanage and embezzle funds.


There is a budget preferred every year.

Many borrowed by a county government must be guaranteed by the National government and approved by the county assembly.

Parliament passes legislation to ensure expenditure control and transparency in the county government.

Many can be stopped by C.S. for finance to prevent mismanagement.

There is open tendering of procurement and disposal of public goods and services.

Implementation of the county budget is supervised by controller of budget.

The revenue and expenditure of county government is audited by the Auditor general.

The governor is accountable to the county Assembly for financial management.

The KACC investigate and recommends for profession f public offices who misappropriate funds.

Functions of the Commission on Revenue Allocation

  • Make recommendations on equitable sharing of revenue.
  • Revenue sharing between National and county government.
  • Sharing revenue among the county government.
  • Making recommendations on other matters concerning financing and financial management by county government.
  • Define enhance the revenue sources of the county and national government.
  • Encourage fiscal repsonbility.
  • Determine, publish and regularly review the criteria by which to identify the marginalized area.
  • Submit recommendations to the senate, the national assembly, the national executive, county assembly and county executive.
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