Part VI – MANAGEMENT OF REVENUE AND OTHER RECEIPTS · PFM Regulations

57Classification of County Government Revenues

(1) County government receipts may be classified into domestic receipts and external receipts.

(2) Domestic receipts under paragraph (1) shall comprise of —

(a) domestic loans receipts;
(b) tax revenues; and
(c) non tax revenues including exchequer non tax receipts and Appropriation-in-Aid.

(3) External receipts under paragraph (1) shall comprise of—

(a) external loans including national exchequer loan receipts and credit purchase; and
(b) external grants including national exchequer grant receipts and direct payments.

58Format of estimates of revenue

(1) The estimates of revenues shall be in the format issued by the Cabinet Secretary and shall include—

(a) the description of the source of revenue in terms of head code;
(b) estimated revenues;
(c) the receiver of revenue;
(d) for each revenue head, there shall be shown revenue items; and
(e) the amounts and the nature of receipts.

(2) The estimates of revenue shall include the actual revenue for the two previous financial years (N-2) (N-1), the current financial year revenue estimates (N), and the projected revenue estimates for the next two outer years (N+1) and (N+2).

59Basic principles in deciding whether sums shall be applied as AIA

(1) The following shall be the basic principles in deciding whether sums shall be applied as Appropriation-in-Aid—

(a) receipts arising directly out of expenditure on a service, the primary purpose of which is not collection of revenue (including user charges, user fees and sale of stores) and may be Appropriated in Aid of the vote from which expenditure on the service is met;
(b) Appropriations in Aid shall be applied against a vote;
(c) where miscellaneous receipts are individually and collectively small, and circumstances of receipt unimportant in themselves, such receipts may be credited to Appropriations in Aid; and
(d) sums due as Appropriations in Aid in the previous year shall be credited to the Appropriations in Aid head of the year in which they are actually received.

(2) Despite the provision under paragraph (1), the County Executive Committee Member may designate any type of Appropriations in Aid as revenue in furtherance of certain county government policies.

60Main forms of receipts in development estimates

The following shall be the main forms of receipts which occur in development estimates—

(a) Appropriations in Aid inform of receipts collected by any authorized county government agency or derived from the sale of goods and services directly derived from projects contained in the appropriate expenditure head;

(b) credit purchases charged to the appropriate head representing expenditure on the cost of goods or services supplied and credited to the county government entity, but such transactions may be carried out only after County Treasury's advice;

(c) direct payments from grants from external sources charged to the appropriate head representing expenditure on the cost of goods or services supplied and credited to the county government entity of which may be carried out only after County Treasury's advice;

(d) loan and grant receipts through the county exchequer account; and

(e) tax and non-tax revenue through the county exchequer account.

61Receivers of revenue

(1) A receiver of revenue designated by the County Executive Committee Member under section 157 of the Act, shall be responsible for the collection of and accounting for, such items of revenue as the County Executive Committee Member may specify.

(2) A letter for the designation of receiver of revenue under paragraph (1) shall indicate his or her responsibility and the manner in which he or she may delegate the duties of collection of revenue to officers under him or her or of another county government entity.

(3) Despite the provisions of paragraph (2), the receiver of revenue for loans and grants funds shall be the Chief Officer to the County Treasury, and the County Executive Committee Member shall specify such items of revenue in the designation letter.

62Collection of revenue

(1) The receiver of revenue shall, in accordance with section 158 of the Act, authorize a public officer or any of the county government entities to be a collector of revenue for county government for the collection of, and accounting for, such items of revenue as the receiver of revenue may specify.

(2) Except with the specific authority of the collector of revenue, in no case may a public officer whose duty involves the posting of assessment registers, rent rolls and similar documents be authorized to collect public moneys or to post collections into a cash book.

63Responsibility for revenue management

(1) An accounting officer and a receiver of revenue are personally responsible for ensuring that—

(a) adequate safeguards exist and are applied for the prompt collection and proper accounting for, all county government revenue and other public moneys relating to their county departments or agencies;
(b) adequate measures, including legal action where appropriate, are taken to obtain payment;
(c) official receipts are issued for all moneys paid to county government.

(2) An accounting officer or receiver of revenue who experiences difficulty in collecting revenues due to the county government shall report the circumstances to the County Executive Committee Member without delay.

(3) Except with the authority of the County Executive Committee Member, no receiver of revenue Or collector of revenue, may convert public moneys received in local currency into foreign currency and vice versa.

(4) All public moneys collected by a receiver of revenue or collector of revenue or collected and retained by a county government entity, shall be paid into the designated bank accounts of the county government and shall not be used by any public officer in any manner between the time of their receipts and payment into the bank except as provided by law.

(5) An Accounting Officer or receiver of revenue or collector of revenue shall take disciplinary measures in line with the relevant legislation against a public officer who contravenes paragraph (4) of this regulation.

(6) An accounting officer or receiver of revenue or collector of revenue shall ensure adequate books of accounts are kept relating to revenue collection and management.

(7) A public officer who makes payment from monies collected under this regulation commits an offence under the Act.

64In-year reporting of revenue collection

(1) The Accounting Officer or receiver of revenue or collector of revenue shall prepare a quarterly report not later than the 15th day after the end of the quarter.

(2) The quarterly report in paragraph (1) shall include—

(a) a statement of receipts and disbursements in such form as the Public Sector Accounting Standards Board may determine;
(b) a statement of arrears of revenue which shall be classified by financial year; and
(c) reasons for material differences between approved estimates and the actual revenue collected.

(3) The accounting officer or receiver of revenue or collector of revenue shall include in the report under paragraph (1), the following details in respect of each waiver or variation—

(a) the full name of each person benefiting from the waiver or variation;
(b) the amount of tax, fee or charge affected by the waiver or variation;
(c) the year to which the waiver or variation relates;
(d) the reasons for the waiver or variation; and
(e) the law in terms of which the waiver or variation was granted.

(4) The quarterly report under paragraph (1) shall be submitted to the County Treasury, with a copy to the Auditor General and to County Assembly. [L.N. 230/2015, r. 6.]

65Fees for services rendered by the county government

(1) The Accounting Officer of a county government entity may when finalising their budgets, review all fees, charges or the rates, scales or tariffs of fees and charges that are not fixed by any law and that relate to revenue accruing to the County Revenue Fund.

(2) An Accounting Officer shall obtain approval from the County Treasury for the proposed tariff structure.

(3) Information on the tariff structure shall be disclosed in the annual report, including information on exemptions, discounts, free services and any other aspect of material influence on the revenue yield.

66Agency services and revenue management

(1) When a county government entity renders agency services to another county government entity or national government entity, all revenue receipts collected shall be accounted for fully by the agent to the receiver of revenue or collector of revenue or accounting officer.

(2) Any exceptional to paragraph (1) on the expenses arising from the revenue administration costs shall be expressly agreed between the county government entity and the respective receiver of revenue or collector of revenue or accounting officers based on a service level agreement signed between them.

(3) Claims for agency services rendered on behalf of another county government entity level of government, shall be based on actual revenue collected and accounted for and shall be supported by original vouchers and shall be reflected in the books of accounts of transacting institutions.

67Refund of revenue

(1) Refunds of revenue may become necessary because of collections or overcollections made in error or because, although properly collected in accordance with an Act or these Regulations, provision exists under the Act or Regulations for the revenue to be reclaimed under certain circumstances in the form of a rebate or drawback.

(2) Refunds of revenue and drawbacks under paragraph (1) shall be in accordance with the relevant legislation.

(3) Any refunds under paragraph (1) shall be provided for under an expenditure item appropriated by County Assembly in a County Appropriation Act.

(4) Where the collection, over-collection or drawback is made in the same financial year as that in which the revenue was originally collected, it may be authorized by the officer prescribed in the relevant legislation to be charged as a debit item in the appropriate revenue head.

(5) A Receiver of revenue or collector or revenue shall prepare estimates of refunds from taxes or fees or charges for the following financial year, and submit the budget to the County Executive Committee Member for consideration and inclusion in the budget estimates of the County Treasury for appropriation by County Assembly.

(6) The estimates of refunds submitted under paragraph (5) by the receiver or collector of revenue shall include assumptions underpinning the refund estimates.

68Format of annual and quarterly statements submitted by the receivers of revenue

The annual, quarterly and monthly statements by a receiver of revenue submitted to the County Treasury under sections 158(3) and 165 of the Act, shall be in the format gazetted by the Cabinet Secretary and at the minimum shall include—

(a) the actual revenue received by the receiver and transmitted to the county exchequer account;

(b) the actual revenue received by the receiver and not transmitted to the county exchequer account;

(d) a responsibility statement by the receiver of revenue on the revenue statement.

PFM Regulations

Part VI – MANAGEMENT OF REVENUE AND OTHER RECEIPTS