THE PUBLIC FINANCE MANAGEMENT (AMENDMENT) BILL, 2024
Status Timeline
Proposed
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Public Review
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Debate
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Executive
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Final
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New April 30th Submission Deadline
The bill inserts Section 131A(1), requiring the County Executive Committee member for finance to obtain County Executive Committee approval, make a public pronouncement of revenue-raising measures, and submit the County Finance Bill to the County Assembly on or before 30th April annually.
Mandatory June 30th Passage for Assent
Under Section 131A(3), County Assemblies are required to consider and pass the County Finance Bill, with or without amendments, in time for the bill to be presented for assent by 30th June of each year.
Repeal of Outdated Budget Timelines
The bill repeals Section 132 and Section 133 of Cap. 412A. This eliminates the provision that permitted County Assemblies to delay the approval of the Finance Bill for up to ninety days after passing the annual Appropriation Bill.
Statutory Guidelines for Assembly Revenue Decisions
Any revenue-related recommendation or resolution passed by the County Assembly under Section 131A(4) must:
- Align total revenue with the approved fiscal framework;
- Apply principles of equity, certainty, and ease of collection;
- Evaluate the impact on development, investment, employment, and economic growth;
- Comply with international taxation and tariff treaties ratified by Kenya, including the East African Community Treaty.
Bill No.
Senate Bills No. 27 of 2024
Gazette No.
Supplement No. 97
Sponsor
AARON CHERUIYOT
Background
The Public Finance Management (Amendment) Bill, 2024 addresses a legislative ambiguity in the Public Finance Management Act, Cap. 412A. Previously, county finance executive members were required to submit all budget-implementing legislation to the County Assembly by April 30th, except for the Finance Bill. This exclusion often led to late submissions and delays in passing county revenue measures, sometimes stretching past the start of the new financial year. The bill aims to establish synchronized timelines similar to those enacted at the national level under the Statute Law (Miscellaneous Amendments) Act, 2019, which followed judicial precedents concerning statutory budget timelines.
Key Amendments
- Section 129(2)(a) Amendment: Amends the principal Act by deleting the phrase "except the Finance Bill" from the list of budget-related submissions required by April 30th, integrating the Finance Bill into standard budget timelines.
- Insertion of Section 131A: Establishes a structured sequence for the submission, consideration, and passage of County Finance Bills.
- Repeal of Sections 132 and 133: Removes redundant provisions regarding the timeline of county revenue-raising measures and the 90-day grace period for passing the Finance Bill after the Appropriation Bill.
New Obligations
- County Executive Committee Member for Finance: Must declare revenue-raising measures and submit the approved County Finance Bill to the County Assembly by April 30th of each year. They must also compile their recommendations into a formal report to be tabled in the County Assembly.
- County Assemblies: Relevant legislative committees must officially introduce the submitted Finance Bill. The County Assembly must debate, amend where necessary, and pass the Finance Bill by June 30th each year to ensure it is ready for executive assent before the start of the next fiscal year.
- Revenue Decision Framework: The County Assembly and its committees must ensure all revenue recommendations match the approved fiscal framework and balance equity, certainty, economic growth, and regional tax obligations under the East African Community Treaty.
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