(1)In the city and municipal councils, revenue shall be collected by the division councils, and a division council shall retain fifty percent of all the revenue the division council collects in its area of jurisdiction and remit fifty percent to the city or municipal council.

(2)Where a division fails to remit fifty percent of its revenue under subsection (1), the city or municipal council shall take appropriate measures to make full recovery of the revenue due to the city or municipal council, which may include, but not limited to, withholding any money that may be due to the division from the central Government or any other source.

(3)The city or municipal council may, with the concurrence of a division in its area of jurisdiction, collect revenue on behalf of the division.

(4)Where the city fails to remit revenue referred to under subsection (3), the division council shall retain the revenue due to the city to make full recovery of the revenue due to it.

(5)The town council's revenue shall be collected by the respective town council.

(6)In rural areas, revenue shall be collected by the subcounty councils, and a subcounty council shall retain sixty-five percent, or any other higher percentage as the district council may approve, of the revenue collected by the subcounty council and pass the remaining percentage over to the district.

(7)Where a subcounty fails to remit thirty-five percent or any lower percentage approved by the district council under subsection (6), the district council shall take appropriate measures to make full recovery of the revenue due to it.

(8)A district council may, with the concurrence of a subcounty, collect revenue on behalf of the subcounty council but shall remit sixty-five percent of the revenue so collected to the relevant subcounty.

(9)Where a district council fails to remit the sixty-five percent referred to in subsection (8), the subcounty shall retain a percentage higher than that provided for in subsection (6) to make full recovery of the revenue due to it which is withheld by the district council.

(10)The distribution of grants by the subcounty councils to other councils shall be as is provided under Schedule 7 to this Act.

(11)Notwithstanding the provisions of subsection (10), the disbursement of funds to any council shall be upon accountability for previous release to that council.

(12)A lower local government council shall share equally with the respective higher local government the costs for printing of licences, books of accounts and receipt books, provided the costs do not include salaries.