The Public Finance Management (Amendment) (No. 3) Bill, 2024 THE PUBLIC FINANCE MANAGEMENT (AMENDMENT) (NO. 3) BILL, 2024 A Bill for AN ACT of Parliament to amend the Public Finance Management Act to provide for financial management in the transfer of functions between the two levels of government pursuant to Article 187 of the Constitution and for connected purposes ENACTED by the Parliament of Kenya as follows— PART I— PRELIMINARY PROVISIONS 1. This Act may be cited as the Public Finance Management (Amendment) (No. 3) Act, 2024. 2. Section 94 of the Public Finance Management Act is amended in subsection (1)(a) by inserting the following new sub-paragraph immediately after subparagraph (ii)— (iia) has persistently delayed or failed to remit employee salaries statutory deductions including taxes, pension, social health insurance and cooperative societies deductions; 3. Section 109 of the Public Finance Management Act is amended by inserting the following new subsections immediately after subsection (7) — (7A) The Controller of Budget shall not approve any withdrawals from the County Revenue Fund if— (a) a county government has committed persistent material breach as defined in section 96 of this Act; (b) has persistently delayed or failed to remit statutory deductions including taxes, pension contributions, social health insurance, and cooperative society deductions. (7B) A county shall, every quarter, submit the following additional documents to the Controller of Budget and the National Treasury— (a) a statement of statutory deductions status; Short title. Amendment section 94 Cap 412. of of Amendment section 109 Cap 412A. of of
The Public Finance Management (Amendment) (No. 3) Bill, 2024 Management of — assetsand liabilities. schedule in the budget estimates, identifying allocations from the county government revenue and clearly specifying appropriationsin-aid, additional allocations and proceeds from loans and grants; and (b) in the case of the national government to a county government for a financial year, shall be provided as a separate schedule in the budget estimates, identifying allocations from the national government revenue and clearly specifying appropriationsin-aid, additional allocations and proceeds from loans and grants. (4) The allocations under subsection (3) shall be included in the budget estimates of both the county and national government and shall be submitted to Parliament and the respective county assembly for approval. 186E. (1) A transfer agreement between the two levels of government shall, in addition to the requirements under section 26 of the Intergovernmental Relations Act, include a provision on acquisition, disposal and transfer of assets and liabilities. (2) Where assets are acquired and liabilities incurred in the duration of a transfer of a function to either level of government, the level of government receiving the functions shall— (a) keep, maintain and update the register of assets and liabilities in accordance with the applicable law; and (b) take appropriate measures to ensure that at the end of the
The Public Finance Management (Amendment) (No. 3) Bill, 2024 Cash flow projections in relation to the tinasteried functions. Quarterly and i and reports. transfer period, the assets and liabilities are transferred to the transferring level of government. (3) The process of transfer of assets and liabilities upon the expiry of the transfer period shall be in accordance with the transfer agreement or as may be prescribed by the Cabinet Secretary in regulations. 186F. (1) The transferring level of government shall prepare cash flow M -' a projections based on revenue projections from various sources of revenue. (2) The transferring level of government shall publish and publicize the cash flow projections within fifteen days of the commencement of the transfer period. 186G. (1) The accounting officer in a county government, in case of a transfer of a function from the national government to a county government, shall prepare and submit quarterly and annual financial and non-financial reports to the Controller of Budget; the National Treasury and the responsible national government entity. (2) The accounting officer in the national government in case of a transfer of a function from a county government to the national government shall prepare and submit quarterly and annual financial and non-financial reports to the Controller of Budget; the County Treasury; and the responsible county government entity. (3) The copies of the reports prepared under sub sections (1) and (2) shall be submitted to the Senate, the National Assembly, the Auditor General and the respective county assembly in accordance with the Act.
The Public Finance Management (Amendment) (No. 3) Bill, 2024 I certify that this printed impression is a true copy of the Bill passed by the National Assembly on the 28" November, 2024 Clerk of the National Assembly Endorsed for presentation to the Senate in accordance with the provisions of Standing Order 142 of the National Assembly Standing Orders Spea e National Assembly Spea e National Assembly