The National Treasure Cabinet Secretary John Mbadi has confirmed reports by the Controller of Budget that the Social Health Insurance Fund (SHIF) and the Housing Levy are not included in the consolidated fund.
Speaking during an interview on Citizen TV on Wednesday night, Mbadi confirmed the assertion but noted that it was all within the confines of the constitution.
According to Mbadi, the constitution stipulates that all money raised or received by the national government is directed to the consolidated fund unless there is another fund set for a specific purpose. "We have a constitution that I helped prepare the Public Finance Management Act that we have today.
That Act together with the Constitution says that all moneys collected and raised on behalf of the people of Kenya shall be deposited into the consolidated fund except and unless the same is been directed to a fund created for a purpose," Mbadi stated. "The law allows you to create a fund and channel resources to that fund without the funds going to consolidated funds.
