This study explores the functioning of the lowest elected tier of local government in Kazakhstan that governs villages, towns and small cities. While the existing literature on this issue mostly relies on quantitative data, document reviews and comparative analysis with foreign countries, this study explores new angles on the subject through the qualitative interview method. In so doing, this investigation evaluates the strengths and weaknesses of the lowest elected tier of local governments, their vertical interaction with higher-level local government and social engagement. The following conclusions have been obtained. First, providing authority to aul akims (heads of the lowest elected tier of local government) to develop budgets from locally collected revenue creates unequal opportunities for service provision. This is because the capacity of such local governments to collect taxes varies by population size, geographical features and remoteness from large cities. Second, aul akims now allocate more funds than before, but financing conditions still make them dependent on higher authorities. Third, recent requirements stipulating that aul akims discuss local issues in a local community meeting have made the heads much more socially accountable. Finally, legislation that regulates the functioning of aul akims is complex and incomplete. Based on these findings, this study suggests a number of practical recommendations for policymakers, contributes to existing knowledge via enhancing contextual information and provides directions for future research.