The Public Finance Management (Amendment) (No. 2) Bill, 2024
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
April 30th Deadline for County Finance Bills
Inserts a new Section 131A(1) requiring County Executive Committee members for finance to submit County Finance Bills setting out revenue measures to the County Assembly on or before 30th April each year.
June 30th Assent Target for County Tax Laws
Under the newly introduced Section 131A(3), County Assemblies must consider and pass the County Finance Bill, with or without amendments, in time for presentation for assent by 30th June each year.
90-Day Budget Lag Eliminated
Repeals Section 133 of the principal Act, removing the provision that allowed County Assemblies up to ninety days after passing the Appropriation Bill to approve the Finance Bill.
Strict Standards for Revenue Recommendations
Introduces Section 131A(4), which requires any County Assembly revenue recommendations to remain consistent with approved fiscal frameworks, equity principles, ease of collection, and international treaties like the East African Community Treaty.
Bill No.
No. 26 of 2024
Gazette No.
Supplement No. 90 of 2024
Sponsor
Kimani Ichung'wah
Background
The principal object of the Public Finance Management (Amendment) (No. 2) Bill, 2024 is to harmonize and align the timelines and procedures for the consideration and passage of County Finance Bills by County Assemblies with those of the National Assembly. Previously, County Assemblies operated under Section 133 of the Public Finance Management Act (Cap. 412A), which permitted them to consider and approve Finance Bills up to ninety days after passing the Appropriation Bill. This bill aims to synchronize these county-level timelines into a unified annual financial calendar.
Key Amendments
- Amendment of Section 129(2)(a): Deletes the phrase "except the Finance Bill" from the section, streamlining the general budget document submission procedures at the county level.
- Insertion of Section 131A: Establishes a new, standardized procedure and timeline for the submission, consideration, and passing of County Finance Bills.
- Repeal of Section 133: Removes the provision that allowed County Assemblies a ninety-day post-Appropriation Bill window to approve their Finance Bills.
New Obligations
- County Executive Committee (CEC) Members: The CEC member for finance is required under Section 131A(1) to submit the County Finance Bill containing county revenue measures to the County Assembly on or before 30th April each year.
- County Assemblies: County Assemblies are obligated under Section 131A(3) to consider and pass the County Finance Bill, with or without amendments, in time for presentation for assent by 30th June annually.
- Fiscal Alignment Criteria: Under Section 131A(4), any recommendation or resolution made by a County Assembly or its relevant committee regarding revenue measures must:
- Ensure the total amount of revenue raised is consistent with the approved fiscal framework;
- Take into account the principles of equity, certainty, and ease of collection;
- Consider the impact of the proposed changes on the composition of direct and indirect taxes;
- Consider domestic, regional, and international tax trends;
- Evaluate the impact on development, investment, employment, and economic growth; and
- Take into account taxation and tariff arrangements under international treaties ratified by Kenya, including the East African Community Treaty.
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