Senior Management


FUNCTIONS

(1) Advice the Minister and Permanent Secretary/Treasury on Policy matters related to Supply Chain Management Personnel;

(2) Administration and Development of the Scheme of Service for Supply Chain Management Personnel;

(3) Responsible for policy development and interpretation on Supply Chain Management laws and regulations;

(4) Provide guidance in the overall Supply Chain Management;

(5) Issue administrative guidelines on the interpretation and implementation of the Supply Chain Management laws and other statutes as they relate to the Government;

(6) Introduction of modern management techniques and approaches in the field of Supply Chain Management in public sector;

(7) Ensures that the public sector implements e-government strategies;

(8) Provide guidance and research and development as relates to Supply Chain Management;

(9) Represent the Permanent Secretary/Treasury in Board meetings in organizations dealing in procurement matters e.g. Kenya National Bureau of Standards Committee (KEBS), Kenya Medical Supply Agency (KEMSA) and Public Procurement Oversight Authority (PPOA) among others;

(10) Advice on procurement reviews filed against Ministries at the Public Review and Advisory Board and facilitate implementation of the decisions thereof in consultation with PPOA;

(11) Responsible for planning, co-ordination, designing and implementation of supply chain systems in Government;

(12) Advise on Personnel Establishment of Procurement Staff and Handling of Inter-ministerial Postings of Supply Chain Management Personnel;

(13) Carry out Monitoring, Evaluation and Supplies Management inspections in Procuring Entities;

(14) Oversee and Co-coordinate in Consultation of with PSC, KISM and DPM the Public Sector Purchasing and Supply Management examinations Programmes;

(15) Implementation of the Procurement Module in the IFMIS systems in Government;

(16) Co-ordinate activities of supplies Branch with respect to consultation buying and framework contracting for common user items;

(17) Participate in negotiations of donor funded projects involving Procurement Funding;

(18) Treasury’s representative at  the Public Service Commission meetings on Recruitment of Supply Chain Management Personnel;

(19) Public Private Partnerships, Design Competition and Concessioning;

(20) A.I.E. holder of the Departments Budget;

(21) Implementation of inventory management information system;

(22) Any other duties assigned by the Permanent Secretary/Treasury

Background
Budget Supply Department is one of the key Department of Treasury. It is headed by a Director of Budget with technical officers of Finance cadre, Economists Accountants and Administrators. The Department has evolved from a small unit of the Ministry of Finance at independence to a full pledged Department in the late 1970s.

Mandate
The department is mandated with the preparation of annual estimates of revenues and expenditures that are laid before Parliament every year for approval. It does also prepare supplementary estimates as the need arises. The department fulfills a constitutional requirement as per section 100 of the constitution of Kenya.

Objectives
Strengthen the budget and reporting system to put in place a more efficient and effective Public Financial Management System.
Implementation of budget process to conform to the essential principles for sound budget management.
To introduce a performance perspective to the budget process by aligning expenditure to policy priorities.
To link to planning, policy objectives to budget allocation.
Restructure the budget so as to fund program areas that can be identified in line with the ERS targets

Functions
Coordination of the preparation and presentation to Parliament of MTEF and Annual Estimates of expenditure.Development of broad priorities for allocation of public expenditure and implementing Ministerial Ceiling System. Enforcing proper management control, monitoring and evaluation for efficient utilization of budgetary resource to realize value for money.Setting up systems for the budget process e.g. GFS classification MTEF Budget. Ensuring that allocation of resources is consistent with Government policy priorities.

Mission

Create and promote better understanding between the Ministry of Finance and its publics (stakeholders).

Vision

To sustain a positive image for the Ministry of Finance.

Administration Department is a service department whose policy mandate is to provide general direction and coordination of all policy administrative and financial matters as derived from the delegated powers of the Accounting Officer. The department is responsible for providing an enabling environment in order for the Ministry to meet its mission, goals and objectives. The Department is headed by the Director of Administration .

In discharging its responsibilities, the department is divided into a number of divisions/units, namely:

1. General Administration Division
2. Human Resources Management Division
3. Finance Division
4. Public Relations Office
5. Accounts Division
6. Procurement Division
7. Human Resources Development Division
8. Central Planning Unit
9. AIDS Control Unit
10. Group Personal Accident Unit

This division is charged with the responsibility of providing administrative support services to technical departments in the Ministry, enforcing observance of government rules and regulations at the Ministry headquarters and also handling of a number of non-technical duties in the Ministry. Specifically, the division is responsible for the following duties:-

1. Coordination of parliamentary business

2. Control of expenditure under head 135

3. Coordination of general legal matters and Ministry land issues

4. Maintenance of a clean and safe working environment at Treasury Building and BIMA House

5. Provision of transport services

6. Allocation of office space

7. Provision of telephone services

8. Provision of working tools in the following offices

1. Minister's office

2. Assistant Minister's office

3. Permanent Secretary/Treasury's office

4. Financial Secretary's office

5. Sections within the division

9. Ensuring smooth running of main and secret registries of the Ministry

10. Coordination of boarding of obsolete government stores

Structure
For effective discharge of the above tasks, the division is subdivided into the following sections.

1. Security Services Section
2. Telephone Services Section
3. Registry Services Section
4. Office Services Section
5. Transport Services Section

MANDATE
The mandate of the Human Resource Department is administration of personnel policies and co-ordination of all human resource matters in liaison with Directorate of Personnel Management and Public Service Commission.

MISSION STATEMENT
To contribute to the economy in providing professional support to all the departments in the Ministry on Human Resource Management with an aim to improving service delivery and attainment of the Ministry's core objectives.

FUNCTIONS
The functions of the Human Resource Division are the following:-

    Interpretation of policies, rules, regulations relating to
    Recruitment and placement
    Reward/Performance management
    Discipline
    Retirement
    Industrial Relations development using available resources.
    Ensuring optimal utilization of human resources
    Administration of the payroll
    Management of personnel records
    Co-ordination of manpower planning, staff development and related activities.
    Succession Management

COMMITMENT

The human resource division is committed to promotion of parity, equity and fairness in the treatment and administration of the human resources in the Ministry and to ensure that the human capacities are optimally utilized to realize the Ministry's corporate goals and objectives.

Structure of HRM Department

Sections:

    Human Resource General Services

    Complement Control

    Salaries

    Pensions

    Human Resource Registries

    Confidential Registry

Structure:

general_admin_structure

Budget Reforms
A Historical Background
The Government of Kenya had on an annual basis prepared two budgets a recurrent and a development budget. This process was adequate then as the economy was relatively small. The government was also a small institution and there was limited skilled manpower and limited resources. As the economy evolved and became more complex in all ways it became necessary to realign the manner in which resources were sourced and allocated. Reforms have also been undertaken in line with international best practice.
Among the reforms that have been introduced over the years are:

Programme Review and Forward Budget.
    Budget Rationalization Programme
    Public Investment Programme
    Medium Term budgeting process (commonly referred to as the Medium Term Expenditure Framework MTEF).
    The MTEF process and the Annual Budget

Other Articles under Budget Reforms
    Programme Review and Forward Budget
    Budget Rationalisation programme
    Public Investment Programme
    Public expenditure management prior to the Introduction of the Medium Term Expenditure Framework
    Recent Budget Reforms: Introduction of Medium Term Expenditure Framework
    Design and Rationale for adoption of Medium Term Expenditure Framework.
    Institutional Arrangements in the Implementation of MTEF

Mandate
The Public Relations Office is charged with the responsibility of projecting a positive image for the Ministry of Finance. This is achieved through deliberated and well planned communication activities targeted at the Ministry's internal and external publics (stakeholders)

Functions:
The PR office serves the entire Ministry providing communication support services cutting across all the departments. The Office provides external linkages for the Ministry's stakeholders who include other ministries, government/departments, Parastatal, Development partners, private sector, civil society and the general public.

The Office is headed by a Public Relations Officer (PRO) who is responsible for the Ministry's communications i.e.

    External Communications
    Internal Communications
    Protocol matters
    Media relations

Motto: Image is everything. (Rider - Reputation is the intangible key asset for the success of the organization).


Aspirations

    Enhanced communication among internal and external publics. (Ministry's stakeholders).
    Sensitive to inquiries.
    Timely appointments especially for top management.
    Prompt and speedy response to issues raised in the media concerning the Ministry.
    Effective liaison between external and internal stakeholders and the management.
    Enhance partnership with media.
    Enhance transparency through information sharing

In implementing the MTEF ministries/departments are required to focus on the expected outcomes of their expenditures and programmes. The annual budget and the (3-year) rolling MTEF provides a way to evaluate the realization of the outputs and outcomes and their contribution to the overall economic growth of the economy. The first step is the establishment of national priorities which become the basis for the claim of resources, and a consistent macro-forecast of key parameters such as desired growth targets, inflation rate, exchange rate, interest rate and other macro economic parameters.

The Macroeconomic Working Group analyses the macro economic situation, forecast a realistic level of available resources and determine the overall expenditures as well as other macro and sectoral parameters; This is reflected in a Fiscal Strategy Paper that is discussed with Ministries and is taken to cabinet for approval.

The Ministries participate through the Sector working Groups where through the Ministerial Public Expenditure Reviews they are able to review their past performance, cost and prioritize their programmes. The Ministerial reports are consolidated into a sector report that is subjected to public consultation through a process known as sector hearings. Thereafter the sector reports are finalized and a criteria is developed for sharing out the resources among various Ministries

The ministries engage in a negotiation process through a process known as sector bidding where the Ministries are allocated funds according to priorities as well as available resources. Thereafter the Ministries then consolidated their resources to form the Ministerial ceiling which they use to prepare their itemized budget. The Ministries submit their itemized budget which Treasury reviews and finalizes for submission to parliament.

One major departure of MTEF from the previous process is the issue of political buy in. At almost every other stage the budget is submitted to the cabinet for briefing and for approval. There has also been substantial engagement with the parliament at the departmental committees. The annex III attached gives a pictorial presentation of the MTEF process and the annual budget.

The annual budget process previously followed was coordinated by the Ministry of Finance which issued budget ceilings for recurrent budget every year. The Ministries then prepared their itemized budget and submitted it to Treasury for review and approval. This process had several shortcomings which included:
(i) None adherence to the ceilings given,
(ii) None prioritization of programmes and activities,
(iii) A lack of future considerations of the recurrent costs generated by capital outlays.
(iii) This budget process laid more emphasis on item level allocation and failed to link the budget to the development plan. At Ministry of Planning was charged with the responsibility of planning whereas the Ministry of Finance coordinated the budget. The development plan did focus on the expected outcomes and failed to capture the overall objectives of the plan. Entry of the programme review and Forward budget was an attempt to link development plans with the budget.

The first major reform was the Programme Review and Forward budget which was adopted in the 1970s. The rationale behind this reform was to provide a mechanism that would link the annual budgets to the development plans.

The main objectives of the programme review and forward budget was:
(i) To provide Ministries and other spending agencies with three year ceilings on expenditures
(ii) To establish the cost of programmes particularly the future costs of presents created facilities
(iii) To establish a process of reviewing priorities and linkage to available resources
(iv) To provide for identification of future requirements generated by present policies
(v) To provide a criterion for reviewing the performance of ongoing as well as future programmes ( The forward budget was assumed to be the only mechanism for introduction of new programmes)
(vi) Finally to provide a linkage between planning and budgeting.

The Programme Review and Forward Budget continued till the time when Medium Term Expenditure framework was introduced. However several other process were adopted with an aim of improving the process and this included the introduction of the Budget Rationalization Programme as well as the introduction of the Public Investment Programme.

The Government recognized that the Budget Rationalization Programme could not by itself achieve the higher level of strategic investment planning. The strategic investment planning was expected to be the basis of the forward and Annual Budget exercises. GoK therefore introduced the Public Investment Programme (PIP). The main rationale for introducing the PIP was to strengthen the forward budget by providing a more comprehensive instrument for planning and prioritization of public expenditures.
PIP had six major objectives which were:
  Strengthen the project cycle, namely the identification, design, appraisal, implementation, monitoring and evaluation of projects;It was to become an instrument of economic management used to monitor public sector capital formation targets, and to ensure that sectoral strategies are translated into projects and programmes;Become a tool for better aid coordination to assist in the matching of Government investment needs with donor financing opportunities Strengthen overall public expenditure management by sharpening departmental priorities, improving the phasing of projects and relating their total implementation costs and subsequent operating costs to recurrent and development ceilings Be used to monitor the investment plans of state corporations that may directly or indirectly impinge on the government finances and
   To allow accurate forecasting of future recurrent expenditure demands on financial resources. Development partners played a key role in the introduction of the PIP as they also provided technical assistance for the implementation and institutionalisation of the exercise into the budgeting process. By 1994 some progress had been made as the PIP was now being coordinated by the Ministry of Planning and National Development and the annual timetable had incorporated PIP as a key input to the annual budget and in this way it was able to influence the budget exercise. However despite all these improvements the major weaknesses in budgeting for capital investments continued as the completion rate of programmes was as low as 3%. Many projects had stalled some as complete as 90% and this applied not only to government funded projects but also to donor funded programmes. These projects had also generated pending bills whose deficit on a commitment basis had gone up as the hard budget constraint translated into informal funding.