It will cost taxpayers Sh100 million to implement proposals in a Bill that seeks to compel the government to provide a complete, sector-based, informative summary of all estimates of expenditure in respect of each of the sub-county administrative units.
According to a Parliamentary Budget Office (PBO) report, the implementation of the Public Finance Management (Amendment) Bill, 2025 will involve upgrading the Integrated Financial Management Information System (IFMIS) at all sub-county levels.
In addition to upgrading IFMIS at the sub-county level, the money will also be used to integrate the 290 sub-counties into budget coding.
Each accounting officer, budget officer and relevant technical officer will also require annual training on sub-county reporting and IFMIS enhancements.
The office says that the training cost per officer is estimated at Sh100, 000 per annum.
There are approximately 2,500 officers across the National Treasury and MDAs who will be directly involved in budgeting, coding and reporting functions.
In addition, the Sh100 million will also go towards IFMIS system reconfiguration to incorporate sub-county geographic coding and reporting. There is also an annual cost escalation, which is assumed at five percent.
The Bill, sponsored by Suba South MP Caroli Omondi, seeks to make the budget open and transparent so that each constituency will know what is allocated to it in terms of infrastructural development.
Under the current framework, the preparation of estimates of revenue and expenditure is a primary responsibility of the National Treasury, undertaken in collaboration with Ministries, Departments and Agencies (MDAs).
Suba South MP Caroli Omondi.
Photo credit: Dennis Onsongo | Nation Media Group
The National Treasury consolidates submissions from MDAs into national budget estimates that are presented to Parliament for consideration and approval.
Under this arrangement, it is difficult to determine what each sub-county is entitled to.
“Prepare analyses of the estimates of the national government expenditure and the estimates of expenditure for the Judiciary and Parliament and report to the committees of Parliament on whether or not the estimates are in respect of each of the sub-county administrative units for the time being in existence and constituting a single-member constituency for both the National Assembly and the Senate,” reads the Bill.
In its report, the PBO said implementation of the draft Bill will significantly enhance transparency and accountability in public financial management by requiring detailed, sector-based expenditure reporting at the sub-county level.
“This will improve visibility of resource allocation across constituencies and strengthen Parliament’s capacity to undertake evidence-based oversight of national government expenditure,” reads the PBO report.
The same system is implemented in Rwanda, Mexico and South Africa.
Transparency in public expenditure
The PBO, in its report to the Budget and Appropriations Committee, which is currently examining the Bill before its introduction for First Reading, said the proposed legislation has several benefits that should be considered.
The benefits, according to the PBO, include enhanced transparency in public expenditure, strengthened parliamentary oversight, improved equity in resource allocation, strengthened accountability and reduced misallocation.
In addition, the PBO says implementation of the Bill will lead to improved evidence-based planning and decision-making, enhanced public participation and citizen engagement, improved monitoring and evaluation of development outcomes, and promotion of balanced regional development.
“When budgeting, execution and reporting systems are linked to administrative boundaries, it becomes easier for oversight institutions to verify allocations, monitor implementation and assess equity in the distribution of public resources,” reads the PBO report.
Mr Omondi argued before the committee on Thursday that, if adopted by the House and signed into law, the Bill will assist Members of Parliament to review and understand the form and content of the budget.
“What I’m trying to cure is a situation where some areas get allocations for roads each financial year and they are well developed, while some areas have no infrastructure at all,” Mr Omondi said.
Mr Omondi pointed out that the current block presentation of figures does not promote principles of equity, openness, sustainability, transparency, inclusivity, non-discrimination, fairness and access by the public to timely and accurate information.
“The objective of these amendments is to give effect to the provisions and principles of the Constitution on equity, openness, sustainability, transparency, inclusivity, non-discrimination, fairness and access by the public to timely and accurate information affecting the nation under Articles 10, 35, 201 and 232,” reads the amendments.
If approved, the lawmaker says it will eliminate corruption and the issue of pending bills that both the National Assembly and county governments have been grappling with, since all the monies for a particular project will be ring-fenced.
He said the move will also promote equitable development across the country, as constituencies that miss out on infrastructural development in one financial year will be earmarked to benefit in the next.
