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Kenya successfully issues USD 2.1 Billion Euro Bond on 15th May 2019

 

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Nairobi, May 15th, 2019

 

1. The Government of Kenya, acting through the National Treasury and Planning, has successfully priced a new US dollar 2.1 billion, dual-tranche Eurobond of 7-year and 12-year tenors on 15th May 2019 in London, United Kingdom.

 

Launch of the Retirement Benefits Authority 5th five-year Strategic Plan 2019-2024

 

Nairobi, May 7th, 2019

 

"The National Treasury will censure state corporations that fail to remit pension deductions to their pension schemes in a timely manner," said The National Treasury and Planning Cabinet Secretary, Henry Rotich during the launch of the Retirement Benefits Authority 5th five-year Strategic Plan 2019-2024 at the K.I.C.C today. Rotich added that the Government is committed to commencing the contributory Public Sector Superannuation Scheme.

THE 2019 AFRICAN THINK TANKS SUMMIT

 

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Nairobi, April 24, 2019

 

The National Treasury and Planning Cabinet Secretary, Henry Rotich has commended The African Capacity Building Foundation - ACBF for the role they have played over the last three decades in addressing Africa’s capacity challenges. This was during the Official Opening of the 2019 African Think Tanks Summit held at KICC today.

 

CS Rotich registers for Huduma Namba

 

Nairobi, February 17, 2019

 

The National Treasury and Planning Cabinet Secretary, Henry Rotich, today led his staff in registering for the Huduma Namba at the building in Nairobi. The CS urged the public to turn up in large numbers during the ongoing registration under the National Integrated Identity Management System (NIIMS). More than 8 million people have registered in the countrywide registration process.

 

Public Notice on the Draft Comprehensive Policy on Unclaimed Financial Assets

 

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Kenya has come a long way in the development of strong governance frameworks for the various subsectors in the larger financial services industry. Specifically, with regard to the unclaimed financial assets regime, the regulatory framework conceived over seven years ago has witnessed considerable achievements that are now reflected in the work of the Unclaimed Financial Assets Authority (UFAA). These achievements, however, need to be accompanied by a robust reunification strategy, which is the most important pillar of the unclaimed financial assets regime. During the period of implementation of the Unclaimed Financial Assets Act, 2011 a lot of valuable lessons have been learnt and gaps identified in the original idea reflected in the architecture of the Act. It is against this backdrop that the Government has drafted this comprehensive policy on unclaimed financial assets. The policy is intended to strengthen the unclaimed financial assets regime in Kenya and guide further review and amendments to the relevant existing laws and regulations.

 

Government Assets & Liabilities Management

 

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Launch of Kenya’s Cost of Hunger in Africa Study to be held at Kenyatta International Convention Centre, Nairobi on 14th February, 2019.

 

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Nairobi, February 14, 2019

 

 

The Principal Secretary State Department of Planning Dr. Julius M. Muia speaks to stakeholders during the kickoff of the Cost of Hunger in Africa (COHA) Kenya study at the Kenyatta International Convention Centre. The study seeks to raise the profile on the economic and social impacts of child undernutrition in Africa focusing on health, education and labour productivity sectors.

 

 

Key stakeholders at the Cost of Hunger in Africa Kenya study follow keenly the proceedings of the Cost of Hunger in Africa Kenya Study kick off at the Kenyatta International Convention Centre (KICC).

 

7th African Fiscal Forum –Levering Fiscal Policy to Manage Risks and Support Inclusive Growth

 

Nairobi, February 14, 2019

 

 

National Treasury and Planning  ,Cabinet  Secretary ,Henry Rotich giving his keynote address during the 7th African Fiscal Forum  on Leveraging Fiscal Policy to Manage Risks and Support Inclusive Growth  today 14th  February 2019 at Radission Blu Hotel.

 

 

 

Ambassador of the European Union to the Republic of Kenya, Stefano Dejak giving his remarks during the 7th African Fiscal Forum on Leveraging Fiscal Policy to Manage Risks and Support Inclusive Growth today 14th   February 2019 at Radission Blu Hotel.

 

Request for Comments on the Draft Kenya Sovereign Wealth Fund Policy and Draft Kenya Sovereign Fund Bill 2019

 

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Nairobi, February 8, 2019

 

The Constitution of Kenya requires the Cabinet Secretary to seek views of stakeholders and the public on matters relating to public finance.

 

The National Treasury has developed a draft Kenya Sovereign Wealth Fund Bill, 2019 and draft Kenya Sovereign Wealth Fund Policy which provide a framework for management of natural resource revenues. The draft bill and policy are available on the National Treasury website www.treasury.go.ke. The purpose of this press release is to invite comments on the draft Kenya Sovereign Wealth Fund Bill and the draft Kenya Sovereign Wealth Fund Policy to facilitate finalization.

 

The comments should be submitted to the undersigned or through the email address This email address is being protected from spambots. You need JavaScript enabled to view it. by 26th February 2019.

 

DR. KAMAU THUGGE, CBS

PRINCIPAL SECRETARY/NATIONAL TREASURY

 

Kenya Mortgage Refinance Company Workshop on The Master Refinance Agreement – Feb 5, 2019, Hotel Intercontinental

 

Nairobi, February 5, 2019

 

The National Treasury is contributing to the Affordable Housing Pillar of the BIG 4 Agenda by supporting the establishment of a liquidity facility (Kenya Mortgage Refinance Company) in order to increase access to liquidity and longer-term funds for Banks and SACCOs to lend towards residential mortgages in Kenya. In order to operationalize the company’s lending operations, a draft Master Refinance Agreement (MRA) was drafted. The MRA is a framework legal document that sets the general terms of engagement between KMRC and primary mortgage lenders in relation to refinancing of mortgages.

 

Involvement in all stages of project development cycle. The department will strive to participate by representation in project appraisal, formulation, implementation, monitoring and evaluation stages for all Donor Funded Projects in the budget.
Enhancing project implementation through tying release of funds to production of project work plans as inputs to the annual budget estimates.

Mission
To continuously provide quality Accounting Services in the Public sector through proper maintenance of accounting records, timely provision of financial reports and ensuring proper accountability of public funds
Vision
To be a leading entity in the provision of quality Accounting and Financial advisory services to the public sector in Kenya and in the Region

Policy Mandate
The Accountant General’s Department is responsible for planning, developing and implementing Government accounting policy, systems and procedures including computerization programmes of accounting systems and monitoring revenue collection and expenditures that are approved by Parliament.

Functions
The main functions are:

1) Planning, development, implementation and formulation of policy pertaining to accounting systems, procedures, rules and regulations.

2) Direction, control and coordination of matters relating to ministries’/departments’ accounting systems and operations in liaison with Heads of Accounting Units.
3) Monitoring and evaluation of accounting systems and utilization of staff in ministries/departments and districts.

4) Direction, control and coordination of all matters pertaining to Paymaster General (Banking) and District Accounting (systems) operations including reimbursement to districts (Cash Management).

5) Direction, control and coordination of operations of the exchequer in matters relating to accounting for revenue including external loans and grants.

6) Liaising with the Central Bank of Kenya on matters relating to consolidated fund and ministries’ bank accounts.

7) Management and control of Government financial reporting system to ensure delivery of timely and accurate financial information for  management decisions.

8) Follow-up on Ministries’/Departments’ Annual Accounts, audit reports, the Public Accounts Committee recommendations and preparation of the Treasury Memorandum.

9) Preparation of letters of appointment of accounting officers and receivers of revenue.

10) Administration of the scheme of service for accountants including: Recruitment in conjunction with Directorate of Personnel Management and Public Service Commission of Kenya, Deployment of Accountants in Ministries/Departments and Districts, Training and development of the accountants in the civil service.

11) Administration of the Accountants Act and Certified Public Secretaries Act, including the management of Registration of Accountants Board (RAB) and Registration of Certified Public Secretaries Board (RCPSB).

Just like all other countries who adopted MTEF, an elaborate system of institutions were put in place to coordinate and manage MTEF process They are:

(i) MTEF Secretariat
The introduction of the Medium Term Expenditure Framework required a concerted effort across all Ministries and Departments of Government. As a start a core team of MTEF Secretariat was set up in the Ministry of Finance and Planning. The Secretariat was coordinating and directing the implementation of MTEF on a full time basis. The secretariat was also expected to make arrangements for capacity building within the secretariat and also for familiarizing and training the key stakeholders and participants in this process.

(ii) Macro Economic Working Group (MWG)
The MWG is responsible for preparing consistent forecasts for economic development and growth. The group also prepares the expected revenues, the financing strategy of public expenditures and together with the Sector Working Groups proposes sectoral resource ceilings. The group is chaired by the Director of Planning and has members drawn from the relevant departments in the Ministries of Finance and Planning and National Development, Kenya Institute for Public Policy and Research Analysis (KIPRA), the Kenya Revenue Authority, The Central Bank. It also co-opts other specialized institutions as and when the need arises.

(iii) Sectoral Working Groups (SWGs)
Initially seven Sectoral Working Groups were set up and later on increased to eight sectors, namely: Agriculture & Rural Development, Physical Infrastructure, Human Resource Development, Tourism Trade and Industry, Public Administration, Public Safety, Law and Order, Information Communication and Technology and National Security.
The SWGs, work closely with line Ministries, and are responsible for developing sectoral policies and objectives; evaluating Ministry/Department estimates submissions and ensuring that the inputs, activities, outputs and outcomes are in line with the national objectives. Each sector has a core secretariat based at the Ministry of Planning and National Development and incorporates Ministries and other stakeholders as and when required.

(iv) Budget Steering Committee
This is a Committee set up in Treasury made of Heads of Department of Budget, Economic Affairs, Debt Management, External Resources, Accountant General, Pensions, GITS, Macro Department of Ministry of Planning and National Development. This team considers the budget proposals and also monitors developments that may arise in the course of implementation of the budget.

Through internal reviews of the performance of the budget process the government realized that its public expenditure management was inconsistent with the objectives of achieving high and sustained growth of the economy necessary for reducing the levels of poverty. The performance of the public sector in itself had become a constraint to the growth prospects of the private sector and thus to overall economic growth. The composition of public expenditure was inappropriate and inefficient. It was this review that emphasized the need to have a comprehensive reform of the public expenditure management spanning from budget formulation to budget implementation.

Arising from this review and its recommendations the Government adopted the Medium Term Expenditure Framework (MTEF) which would guide the efficient and effective use of Government resources and a reduction in the share of public expenditure in the GDP. The MTEF was and is expected to achieve three tasks:

Maintain aggregate fiscal discipline by ensuring that policy changes are consistent with fiscal norms and programme objectives;

Increase efficiency in resource allocation;
Promote efficient delivery of services.

Before the introduction of MTEF in 2000, policy making, planning and budgeting were taking place independently of each other. In Kenya Planning was confined into Ministry of Planning whereas budgeting was confined in the Ministry of Finance. Despite having taken various reforms particularly in the budgeting process the budget was not delivering. The resources available were distributed thinly on too many projects not linked at all to the policy priorities. This often resulted into stalled projects,increase in pending bills(Budgetary Arrears), low funding to priority areas and hence non delivery of intended services.

Although at the start of the Forward budget or the annual budget it was a requirement that there is a forecast of the aggregate resources. Over the years there was the tendency to over estimate revenues which resulted into the adjustments of the budget in the course of the year. The over estimation was mainly driven by the fact that as the deficit had been a performance criteria more efforts were made towards achieving the variable than processes that could lead to the restructuring of the expenditure patterns and composition.

During the period when the budgetary reforms were being instituted the country recorded high fiscal deficit some of which were due to lack of discipline whereas others were due to other external factors such as lack of flow of funds from development partners. The budget was adjusted as soon as was presented to parliament. This was occasioned by the fact that in an effort to balance the budget expenditure adjustments were made on areas where commitments had been made as such the Ministry of Finance would then request Ministries to make re-allocations (virements) or issue them a supplementary. There were also instances of over expenditures due to commitments entered into that were higher than the approved budget and also due to programmes started whereas they had no budgetary provision.

The other weakness of the budget was lack of a process of costing and prioritization. Despite having introduced Public Investment Programme the process of project appraisal was not developed therefore viability of projects just depended on arguments of the implementing agency. The budget therefore turned out to be incremental.

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