Consolidated Fund Kenya
Today we are discussing about consolidated fund Kenya. In public accounting there are various accounting techniques used to account for public resources. These are:
a) Accrual accounting
b) Cash Accounting
c) Commitment Accounting
d) Fund Accounting
Now, let’s put more focus on the last type of accounting and specifically try to explain what is consolidated fund Kenya.
All revenues for the government are swept into and recorded under the consolidated fund which is housed at the National Treasury.
For money to be withdrawn from this fund, one must get approval by the National Assembly.
This means that Parliament is the only signatory of the Consolidated Fund Kenya account.
The reasons for having this arrangement is to ensure that all government revenues are spent on activities which serve public interest. Members of Parliament (MPs) are the ones representing various interest groups.