Equalization Fund

The Equalization Fund (EF) was established under Article 204 (1) of the Constitution of Kenya 2010 which requires that one half per cent (0.5%) of all the revenue collected by the National Government each year, calculated on the basis of the most recent audited revenue received, as approved by the National Assembly, to be paid into the Fund.
Article 204 (2) of the Constitution of Kenya 2010 provides that the national government shall use the fund only to provide basic services including water, roads, health facilities and electricity to marginalized areas to the extent necessary to bring the quality of those services in those areas to the level generally enjoyed by the rest of the nation, so far as possible.