The Public Finance Management (amendment) Bill (senate Bill No. 40 Of 2023)

REPUBLICOFKENYA

PARLIAMENT

SENATEBILLS

(Bill No. 40 of 2023)

THEPUBLICFINANCEMANAGEMENT (AMENDMENT) BILL, 2023

(A Bill published in the Kenya Gazette Supplement No. 160 of 1st September, 2023 and passed by the Senate, with amendments, on 5h December, 2024.)

THEPUBLICFINANCEMANAGEMENT(AMENDMENT)BILL,2023

ABill for

ANACTof Parliamenttoamend thePublicFinanceManagementActandfor connected purposes.

ENACTEDbytheParliamentofKenya,asfollows

Short title.

• 1.ThisAct maybe cited as thePublicFinanceManagement (Amendment)Act,2023.

Insertion of new sections in Cap. 412A.

2. The principal Act is amended by inserting the following newsectionsimmediatelyaftersection160-

Establishment of Committee.

160A.(l) There is establisheda Revenue Collection System Committee which shall consist of—

• (a) the Cabinet Secretary or a person designated in writing;
• (b) the Principal Secretary for matters related to Devolution;
• (c) the Controller of Budget or a person designated in writing;
• (d) the Commissioner General of the Kenya RevenueAuthority or person designated in writing; and
• (e) two persons nominated by the Council of Governors.
• (2)The Committee shall, within nine months of the coming into force of this Act, design, develop and coordinate integrated countyrevenuesystemwhichshall-

Insertionof new Part in No.18of 2012.

Reports.

• (a) be transparent, efficient,effective and verifiable;
• (b) ensure data accuracy and protection;
• (c)respect and promote the distinctiveness of thenational and county governments;
• (d)be adequately secure toprevent any fraud, losses or leakages; and
• (e) provide for separate accounting and reporting
• (3) Within three months of the development of the system under subsection (3),each county governmentshalladoptandimplementthe integrated countyrevenue management system.

160B. (1) A county treasury shall prepare and submit a quarterly report on the status of the adoptionandimplementationof theintegrated countyrevenuemanagementsystem.

• (2)A report under subsection (1) shall be submitted to the respectivecounty assembly,the Senate and the Controller of Budget.
• 3.The Public Finance Management Act, hereinafter the principal Act,is amended by inserting the following new Part immediatelyaftersection191E-

PARTVA-FUNDINGTRANSFERRED FUNCTIONS

191F.(1) Where the National Government has transferred a function toa county government pursuant to Article 187 of the Constitution, the CabinetSecretaryshall inconsultationwith the respective countyexecutivecommitteemember determinethecostofthetransferredfunction.

Functions transferred to National Government.

Functions transferred to county governments.

• (2) The National Assembly shall appropriate suchmoniesasmayberequiredforthe implementationofthetransferredfunctionin accordancewiththedeterminationmadeunder subsection(1)and the allocationshallnotbeless than the amount appropriated by the National Assembly in the preceding financial year.
• (3) The monies appropriated under subsection (2) shall be transferred to the county revenue fund of the respective county government.
• (4) A county government or county government entitytowhichaNationalGovernmentfunctionhas been transferred shall submit a quarterlyreport to the Senate and the respective county assembly on thestatus of the discharge of the transferred function.
• (5) The Auditor-General shall, no later than three months after the end of a financial year, prepare a special audit report on the financial and non-financial performance of a county government or countygovernment entity towhicha county government function has been transferred.
• (6) A report prepared under subsection (5) shall be submitted to theNationalAssemblyand the Senate.

6. 191G. (1) Where a county government has transferredafunctiontotheNationalGovernment pursuant to Article 187 of the Constitution, the county executive in consultation with the national government shall determine the cost of the transferredfunction. 7. (2)The respective county assembly shall appropriate such monies as may be required for the implementationof thetransferredfunctionin accordancewiththedeterminationmadeunder subsection (l) and the allocation shall not be less

than the amount appropriated by the County Assembly in the precedingfinancial year.

• (3) The monies appropriated under subsection (1), shall be transferred to the national government.

2. (4)A national government entity towhich a county government function has been transferred shall submit a quarterly report to theSenate and the respectivecountyassemblyonthestatusof the discharge of the devolvedfunction.

• (5) The Auditor-General shall,no later than three months after the end of a financial year, prepare a special audit report on the financial and non-financial performance of an entity to which a county government function has been transferred.
• (6) A report prepared under subsection (5) shall besubmitted totheSenateand the respective county assembly.

ThePublicFinanceManagement(Amendment)Bill,2023

I certify that this printed impression is a true copy of the Bill as passed by the Senate on Thursday, 5thDecember,2024.

Endorsed for presentation to theNationalAssemblyin accordancewith theprovisions of standing order161(1)oftheSenateStandingOrders.

SpeakerfoftheSenate

REPUBLICOFKENYA THIRTEENTHPARLIAMENT-(THIRDSESSION) THENATIONALASSEMBLY MESSAGES

MESSAGEFROMTHESENATE

(No.030 of2024)

APPROVALOFTHENOMINATIONOFMR.GERALDNYAOMAARITAFOR APPOINTMENTTOTHEPOSITIONOFDEPUTYGOVERNOROFTHE CENTRALBANKOFKENYA

Honourable Members,

• Pursuant to the provisions of Standing Order 41(4) relating to Messages from the regarding the approval of the nomination of Mr. Gerald Nyaoma Arita for

2. Honourable Members, you will recall that the approval hearings for the nominee for the position of Deputy Governor of the Central Bank of Kenya were jointly conducted by the respective committees of the Houses of Parliament. Indeed, on Wednesday, 27th November 2024, the National Assembly approved the appointment of Mr. Gerald Nyaoma Arita as the Deputy Governor of the Central Bank of Kenya. 3. Honourable Members, the approval by the Senate now concludes the bicameral consideration of the matter. I am informed that this decision has already been conveyed to the office of the Head of thePublicService for appropriate action. 4. The House is accordingly guided.

I thank you!

THE RT. HON. (DR.) MOSES F.M. WETANG'ULA, EGH, MP

SPEAKER OF THE NATIONALASSEMBLY

Thursday,5th December2024