The Public Finance Management (Amendment) Bill, 2025

SPECIALISSUE

Kenya Gazette Supplement No.59 (National Assembly Bills No.17)

REPUBLIC OFKENYA

KENYA GAZETTE SUPPLEMENT

NATIONALASSEMBLY BILLS,2025

| NAIROBI,24thApril,2025 | NAIROBI,24thApril,2025 | |-----------------------------------------------------|--------------------------| | CONTENT | | | Bill for Introduction into the National Assembly-- | PAGE | | The Publie Finance Management (Amendment) Bill,2025 | 329 |

NATIONAL ASSEMBLY RECEIVED

22MAY2025

DIRECTOR LEGAL SERVICES P.O.B041842-00100,NAIROBI

THE PUBLICFINANCE MANAGEMENT (AMENDMENT)BILL,2025

A Bill for

AN ACT of Parliament to amend the Public Finance Management Act and for connected purposes.

ENACTED by the Parliament ofKenya as follows-

• 1.This Act may be cited as the Public Finance
• Management(Amendment) Act,2025.
• 2.The Public Finance Management Act, (hereinafter referred to as the"principal Act") is amended by repealing section 191A.
• 3.Section 19iB of the principal Act is hereby repealed.
• 4.Section 19iC of the principal Act is hereby repealed.
• 5.Section 191D of the principal Act hereby repealed.

6. Section 19iE of the principal Act is hereby

• repealed.

Short title.

Repeal of section 191Aof Cap 412A.

Repeal of section 191Bof Cap 412A. Repeal of section 19iCofCap 412A. Repeal of section 19iDof Cap 412A. Repealof section 19iEofCap

412A:

MEMORANDUM OF OBJECTSAND REASONS

The purpose of the Bill is to amend the Public Finance Management Act,in order to ensure that there shall be no duplication in management of additional allocations through intergovernmental agreements.

Statement on the delegation of legislative powers and limitation of fundamental rights and freedoms

The Bill does not limit fundamental rights and freedoms neither does it delegate any legislative power.

Statement on how the Bill concerns County Governments

The Bill is one that concerns County Governments in terms of Article 110(1) (a) of the Constitution.

Statement that the Bill is not a money Bill, within the meaning of

Article 114 of the Constitution

This is not a money Bill within the meaning of Article 114 of the Constitution.

Dated the 15th April,2025.

KIMANIICHUNG'WAH, Leader of Majority Party.

Intergovernmental agreements

Execution of

agreement for conditional allocation

Submission to Senate Section191Aof Cap412Awhich isintendedtoberepealed

• 191A (1) The National Treasury shall enter into an agreement with the respective county government for the transfer of the respective conditional allocation made to the county government pursuant to this Act.
• (2) An agreement under subsection (1) shall set out any conditions that may be attached to the conditional allocations made under this Act.
• (3) Where a county government intends to enter into an agreement under subsection (1),the county executive committee member shall submit the agreement to the respective County Assembly for approval.
• (4) The County Assembly shall,within fourteen days ofsubmission of an agreementunder subsection (3), approve or reject the agreement.
• 5) Where a County Assembly fails to consider an agreement under subsection (3) within fourteen days, the agreement shall be deemed to be approved.
• (6)An agreement under subsection (1) shall set out all conditions attached to an allocationmade under this Act.
• (7) The respective county government shall forward the agreement approved under this section to the Controller of Budget within seven days of approval.

Section191Bof Cap412Awhich is intendedtoberepealed

• 191B.The county executive committee member shall facilitate public participation on any agreement made pursuant to section 191A.

Section191CofCap412Awhichisintended toberepealed

191C.An agreement under section 191A shall be-

• (a) signed by an authorized person or officer;and
• (b) published in the Kenya Gazette within a period of seven days of the agreement.

Section191Dof Cap412Awhich isintendedtoberepealed

• 191D (1) The National Treasury shall,within seven days of entering into an agreement under section 191A, submit to the Senate and the Controller of Budget,the

Requisition offunds

• agreement together with any other documents relating to the agreement.
• (2) The National Treasury shall publish and publicize all agreements entered into pursuant to section 191A.

Section191EofCap412Awhichisintendedtoberepealed

• 191E Requisition of funds from the county revenue fund for the purposes of a conditional grant shall be under section 191A.