The Public Finance Management (Amendment) Bill, 2025
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
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Executive
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Final
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Conditional Allocation Agreements Repealed
Repeals Section 191A of Cap 412A, which required the National Treasury and county governments to enter into agreements for transferring conditional allocations. This includes the removal of the 14-day timeline for County Assemblies to approve or reject such agreements.
Public Participation Mandate Removed
Repeals Section 191B of Cap 412A, which legally obliged county executive committee members to facilitate public participation before entering into conditional allocation agreements.
Senate and Gazette Reporting Requirements Abolished
Repeals Sections 191C and 191D of Cap 412A, removing requirements to sign and publish these agreements in the Kenya Gazette within seven days, as well as the mandate to submit them to the Senate and the Controller of Budget within seven days.
Bill No.
No. 17 of 2025
Gazette No.
Supplement No. 59 of 2025
Sponsor
Kimani Ichung'wah
Background
The Public Finance Management (Amendment) Bill, 2025 is introduced by the Leader of the Majority Party, Kimani Ichung'wah. The primary objective of the Bill is to amend the Public Finance Management Act (Cap 412A) to prevent duplication in how additional allocations to county governments are managed and executed under intergovernmental agreements.
Key Amendments
The Bill seeks to streamline the disbursement of conditional grants to county governments by repealing several administrative steps. It repeals sections 191A through 191E of the principal Act:
- Section 191A (Intergovernmental Agreements): Repealed. This section previously mandated the National Treasury to sign agreements with county governments detailing the specific conditions attached to conditional allocations. It also set out the approval process for County Assemblies (requiring approval or rejection within 14 days).
- Section 191B (Public Participation): Repealed. This section required county executive committee members to conduct public participation sessions on any proposed conditional allocation agreements.
- Section 191C (Execution and Gazettement): Repealed. This section required the agreements to be signed by authorized officers and published in the Kenya Gazette within seven days of signing.
- Section 191D (Submission to Senate and Controller of Budget): Repealed. This section required the National Treasury to submit signed agreements to both the Senate and the Controller of Budget within seven days, and to publicize the agreements.
- Section 191E (Requisition of Funds): Repealed. This section stated that any requisition of funds from a county revenue fund for the purposes of a conditional grant must be supported by an approved intergovernmental agreement.
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