KENYA PUBLIC FINANCE MANAGEMENT REFORMS EXPLAINED.
PUBLIC FINANCE MANAGEMENT ACT.
One of the major reforms that was brought about by the new constitution is the PFM Act?of 2012 which covers the national and county governments. It clearly specifies the roles of the National Treasury and Parliament for the oversight of public finances. The Act includes key provisions on budget preparation, regular reporting to Parliament, stakeholder consultations, sharing of information with the public and public debt management.
INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (IFMIS)
The implementation of an Integrated Financial Management Information System (IFMIS) in all line ministries has complemented the PFM Act. This system allows for the computerization of budget allocations and expenditures, procurement operations, reconciliation of revenue and payments, statements of the government’s financial position, and production of statutory reports in real-time. This system was not only rolled out at the National level but also at the county level.
THE ROLE OF THE PARLIAMENT IN OVERSIGHTING PUBLIC FINANCE.
The oversight role of Parliament in public finances has been significantly enhanced by the new Constitution and the PFM Act. In particular, the PFM Act has clear guidelines on the timely submission of budget estimates for review by Parliament, quarterly reports by accounting officers, and of the government’s debt management strategy.?