Local Government Act - Kenya Law Reports

138 CAP. 265 Local Government
[Rev. 2010
Default powers to
reduce grants or
transfer functions
respecting county
divisions and local
council areas.
L.N. 634 of 1963,
L.N. 34/1965,
11 of 1984, s. 26.
Recovery by
deduction from
grants of debts
due from local
authorities.
L.N. 634/1963,
L.N. 34/1965,
8 of 1997.
Recovery of
debts due under
loans provided
or guaranteed by
Government, etc.
(2) Any such reduction as aforesaid shall be notified to the
council concerned not later than one month after the commencement
of the financial year in respect of which such grant is payable.
250. (1) If it appears to the Minister, upon representations made
to him by a county council or otherwise, that the revenues of an urban
council in that county are not being properly used in the best interests of
the county division, or that the administration of the affairs of the council
concerned is wasteful or inefficient, or that the council concerned has
failed to act in accordance with the provisions of this Act, the Minister
may, after such inquiry as he may deem necessary, at which inquiry the
council concerned shall be entitled to be heard—
(a) reduce any contribution or other grant payable to or for
that council;
(b) transfer to the county council all or any of the functions of
the urban council either for a definite period or until he may
otherwise direct.
(2) Where any functions are transferred under subsection (1), the
expenses incurred by the council to which the functions are transferred
shall, except in so far as they may be met by any grant made by such
council, be a debt due to such council from the council from which the
functions are transferred, and shall be defrayed as general expenses
of the council from which the functions were transferred or as special
expenses of such council or partly as general expenses and partly as such
special expenses as the council to which such functions are transferred
may direct.
251. Where the Minister is satisfied that a decree for the payment
of money has been made by a competent court against any local authority
in favour of the Government or any person, or that for other good and
sufficient reason money is due from and payable by a local authority to
the Government or any person, and the local authority refuses or fails to
make due payment, the Minister may order that such payment be made
from funds of the local authority and if the local authority continues to
refuse to make due payment he may deduct from any contribution or
other grant payable to or for such local authority the amount of the sum
due and payable and pay the same to the Government or such person.
251A. (1) Where a local authority fails to make payment of any
money due and payable under a loan for financing an income generating
facility, the Minister for Finance in consultation with the Minister, may,
where—