The Public Finance Management (Amendment) ( No. 2) Bill ( National Assembly Bills No. 26 of 2024)

REPUBLIC OFKENYA

PARLIAMENT

NATIONALASSEMBLYBILLS (No. 26 of 2024)

THEPUBLICFINANCEMANAGEMENT (AMENDMENT) (NO.2) BILL, 2024

(A Bill published in the Kenya Gazette Supplement No. 90 of 16th April, 2024 and passed by the National Assembly, with amendments, on 14th March, 2025)

N.A./B/No.26/2024

THEPUBLICFINANCEMANAGEMENT (AMENDMENT)(NO.2)BILL,2024

A Bill for

ANACTofParliamenttoamendthePublicFinance ManagementActandforconnectedpurposes

ENACTEDby theParliament ofKenya asfollows

1. This Act may be cited as the Public Finance Management (Amendment) (No. 2) Act, 2025. 2. 2.The Public Finance Management Act,hereinafter referred to as the"principal Act", is amended in section 23 by deleting the words "three months" appearing in subsection(l)and substituting therefor the words "two months". 3. 3.The principal Act is amended in section 24 (10) by deleting the words "three months" appearing in paragraph (b) and substituting therefor the words "two months". 4. 4.The principal Act is amended in section 68— 5. (a) in the introductory statement by inserting the words"or the Auditor-Generalunder Article 229(7)of the Constitution"immediately after the word "Constitution"; 6. (b) in subsection (2) by deleting the words"three months" appearing in paragraph (k) and substituting therefor thewords"twomonths"; 7. (c)in subsection (4) (b) by inserting the words" Auditor Generalimmediately after theword "national Treasury"; and 8. (d) by inserting the following subsection immediately after sub-section (4)-

"(4A) An accounting officer who does not implementtherecommendationsmadeunder sub-section (4) shall be liable to the penalty provided for under section199."

• 5.The principal Act is amended in section 80 by deleting the words"four months"appearing in subsection (4) andsubstitutingtherefor thewords"twomonths".

Short title.

Amendmentof section23 of Cap. 412A.

Amendment of section24 of Cap. 412A.

Amendment of section68of Cap. 412A.

Amendment of section80of Cap. 412A.

6.The principal Act is amended in section 81 by deleting the words"three months" appearing in subsection (4) and substituting the words "two months".

• 7.The principal Act is amended in section 82 —
• (a) by deleting the words "three months" appearing in subsection (3) and substituting therefor the words"twomonths";and
• (b) by deleting the words "three months"" appearing in subsection(4)andsubstitutingthewords "two months".

8.The principal Act is amended in section 115 by deleting the words"three months"appearing in subsection (1) and substituting therefor the words "two months".

9.The principal Act is amended in section 116 (7) by deleting the words"three months"appearing in paragraph (b) and substituting therefor the words "two months".

10.Section 129 of the principal Act is amended in subsection (2)(a) by deleting the words"except the Finance Bill,".

11.The principal Act is amended by inserting the following new section immediately after section131—

Submission, consideration and passingofthe County member for finance shall submit to the Finance Bill. CountyAssembly,on or before 30thApril, theCounty Finance Bill setting out the

131A.(1) County Executive Committee revenue measures for the County Government

(2)Following submissionsofthe CountyFinance Bill by CountyExecutive Committeememberforfinance,therelevant committee of theCountyAssemblyshall introduce theBill in the CountyAssembly.

(3)The CountyAssemblyshall consider and pass the CountyFinanceBill,with or without amendments,in time for it to be presented for assent by 3o" June each year.

Amendment of section 81of Cap. 412A.

Amendment of section 84 of Cap. 412A.

Amendmentof section115of Cap.412A.

Amendmentof section116of Cap.412A.

Amendmentof section129of Cap.412A.

Insertion of a new section into Cap. 412A.

| (4)Anyrecommendationsmadeby the relevantcommitteeoftheCountyAssembly orresolutionpassedby theCountyAssembly onrevenuemattersshall— (a) ensure the total amount of revenue raisedisconsistent withthe approvedfiscalframework; (b) take into account the principles of equity, certainty and easeof collection; (c) be open and accountable, including public participation; (d) consider the impact of the proposed changesonthecompositionofthe taxrevenuewithreferencetodirect and indirect taxes; (e)consider domestic,regional and | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------| | international tax trends; (f) consider the impact on development, investment, employment and economic growth; and (g)takeintoaccount thetaxationand other tariff agreements and obligations that Kenya has ratified, including taxation andtariff agreementsundertheEastAfrican Community Treaty. (5) The recommendation of the County ExecutiveCommitteemember for finance shall beincluded in a report and tabled in the County Assembly. 12. The principal Act is amended by repealing section | Repeal of section 133of Cap.412A. |

229(7) of the Constitution"immediately after the word"Constitution";

• (b) in subsection (2) by deleting the words "three months" appearing in paragraph (k) and substituting therefor the words"two months";
• (c) in subsection (3) by deleting paragraph (b) and substituting thereforthefollowingnew paragraph--

"(b)submit the report to the county assembly withacopytotheCountyTreasury,Controller of Budget and Auditor-General."

• (d) byinsertingthefollowing newsubsection immediatelyafter subsection(3)— subsection(3)shallbeliabletothe penalty

"(3A)An accounting officer who does not implementtherecommendationsmadeunder providedfor under section199."

14.The principal Act is amended in section 163 by deleting the words"four months"appearing in subsection (4) andsubstituting thereforthe words"twomonths".

15.The principal Act is amended in section 164 by deleting the words"three months"appearing in subsection (4)and substituting therefor thewords"two months".

16.The principal Act is amended in section 165 by deleting the words"three months"appearing in subsection (3)and substituting therefor thewords"two months".

17.The principal Act is amended in section 167 by deleting the words"three months"appearing in subsection (3) and substituting therefor the words "two months".

Amendment of section163of Cap.412A.

Amendment of section164of Cap.412A

Amendment of section165of Cap.412A

Amendment of section167of Cap.412A.

ThePublicFinanceManagement(Amendinent)(No.2)Bill,2024

I certify that this printed impression is a true copy of theBill passed by theNationalAssemblyon the14thMarch,2025

ClerkoftheNationalAssembly

Endorsedfor presentationtotheSenatein accordancewiththe provisions of StandingOrder 142of theNationalAssemblyStanding Orders

SpeakeroftheNatiopatAssembly