Emergency funds now a legal requirement for counties following Cabinet approval

Emergency funds now a legal requirement for counties following Cabinet approval
A cabinet meeting held at State House Nairobi on Tuesday, April, 2025. PHOTO/PCS
In Summary

The new law as explained in the Cabinet dispatch on Tuesday, aims to ensure counties are better prepared to respond swiftly to disasters.

Emergency funds will soon be a legal requirement for all counties in Kenya, following the Cabinet's approval of the Public Finance Management (Amendment) Bill, 2024.

This move, which mandates county governments to set up their own emergency funds, represents a significant shift from previous policies that only encouraged such provisions.

The new law as explained in the Cabinet dispatch on Tuesday, aims to ensure counties are better prepared to respond swiftly to disasters, without depending on delayed support from the national government.

The decision to introduce this legal requirement was driven by the lessons learned from the 2023 El Nino rains, which exposed weaknesses in the disaster response capabilities of several counties.

Many counties struggled to respond effectively, as they lacked dedicated resources for quick action.

The damages caused by the rains highlighted the urgent need for a financial framework that allows counties to act fast and protect lives and property during emergencies.

Members of the cabinet arriving for the meeting on Tuesday, April 2025. PHOTO/PCS

Once passed by Parliament, the amendment will compel each county government to establish and manage its own emergency fund.

These funds will be used to finance rescue operations, repair damaged infrastructure, and ensure the safety of residents during crises.

By having dedicated resources in place, counties will no longer have to rely on national government assistance, which often arrives too late to be fully effective.

The proposed changes are based on broad consultations and a directive from the Intergovernmental Budget and Economic Council (IBEC) that took place in August 2024.

During that session, the need for counties to have stronger financial structures to handle emergencies was emphasized.

The Cabinet led by Presdient William Ruto believes that having locally managed emergency funds will reduce dependency on the national government and promote more efficient and organized responses at the county level.

"The amendment aims to equip counties with the financial readiness to respond swiftly to future emergencies, thereby protecting lives, livelihoods, and critical infrastructure," a Cabinet statement read.

The Cabinet emphasized that this move is not only a response to past crises but part of a broader strategy to enhance resilience across the country.

By making emergency funds a legal requirement, the government is aiming to ensure that counties are fully prepared for future disasters.

The 2023 El Nino rains had a widespread impact, and several counties were criticized for their slow response.

The new law aims to avoid a repeat of these shortcomings by ensuring that every county has resources set aside for emergencies, improving response times, and coordination.

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