PART XXIV - FINANCIAL PROCEDURES

General

Restrictions with regard to certain financial measures

219. (1) If, in the opinion of the Speaker, a Motion makes provision for a matter listed in the definition of “a money Bill”, the Assembly may proceed only with the recommendation of the Budget and Appropriations Committee after taking into account, the views of the Member of County Executive Committee responsible for finance.

(2) “A money Bill”, as provided for in section 21 of the County Governments Act means a Bill, that contains provisions dealing with-

(a) taxes;

(b) the imposition of charges on a public fund or the variation or repeal of any of those charges;

(c) the appropriation, receipt, custody, investment or issue of public money;

(d) the raising or guaranteeing of any loan or its repayment; or

(e) matters incidental to any of those matters.

(3) In paragraph (2), “tax”, “public money”, and “loan” do not include any tax, public money or loan raised by a county.

Presentation of County Fiscal Strategy Paper

220. (1) The County Treasury shall submit the County Fiscal Strategy Paper approved by

the County Executive Committee in accordance with section 117 of the County Governments Act, to the Assembly, by the 28^th February of each year.

(2) The County Fiscal Strategy Paper submitted under paragraph (1) shall –

(a) have been aligned with the national objectives in the Budget Policy Statement;

(b) specify the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the medium term;

(c) include the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term;

(d) have taken into account the views of the Commission on Revenue Allocation; the public; any interested persons or groups; and any other forum that is established by legislation.

(3) Upon being laid before the Assembly, the County Fiscal Strategy Paper shall be deemed to have been committed to each sectoral committee without question put, for each such committee to deliberate upon according to their respective mandates and make recommendations to the Budget and Appropriations Committee.

(4) In considering the County Fiscal Strategy Paper, the Budget and Appropriations Committee shall consult each sectoral committee and Table a report, containing its recommendation on the Statement to the Assembly for consideration

(5) The report prepared by the Budget and Appropriations Committee pursuant to paragraph (4) shall include a schedule of ceiling of resources recommended for the County Government, and Assembly.

(6) The approval by the Assembly of the Motion on the report of the Budget and Appropriations Committee on the County Fiscal Strategy Paper shall constitute the Assembly resolution setting forth the total overall projected revenue, the ceilings recommended for the County Government, and Assembly and where necessary, the total sums for each Vote and the allocations to individual programs for the fiscal year in question.

(2) The Assembly shall consider and may adopt the County Fiscal Strategy Paper with or without amendments not later than fourteen days after its submission under paragraph (1).

(3) The County Treasury shall consider any recommendations made by the Assembly when finalizing the budget proposal for the financial year concerned.

Presentation of Budget Estimates and committal to Committees

221. (1) The Member of County Executive Committee responsible for finance and the

accounting officer of the Assembly Service Board shall, not later than 30^th April, respectively submit to the Assembly Budget Estimates and related documents specified in law for the County Government, and Assembly.

(2) The Estimates and related documents submitted under Paragraph (1) will be Tabled in the Assembly within three days of submission.

(3) Upon being laid before the Assembly, the Estimates shall be deemed to have been committed to each sectoral committee without question put, for each such committee to deliberate upon according to their respective mandates.

(2) Each sectoral committee shall consider, discuss and review the Estimates

according to its mandate and submit its report and recommendations to the Budget and Appropriations Committee within twenty-one days, after being laid before the Assembly.

(5) The Budget and Appropriations Committee shall discuss and review the Estimates and make recommendations to the Assembly, taking into account the recommendations of the sectoral committees, the views of the County Executive Committee Member responsible for finance and the public.

(6) The Assembly shall, on a Motion, that “This Assembly adopts the Report of the Budget and Appropriations Committee on the Budget Estimates for the County Government, and Assembly tabled in the Assembly on …..”, consider the Report and adopt it with or without amendments.

(7) Upon the Assembly resolution on the Report-

(a) the recommendation for increase or reduction on any particular Vote as resolved by the Assembly will serve as notice of intention by the Chairperson of the Budget and Appropriations Committee to move the particular amendments on the concerned Vote

(b) the Speaker may require that an appropriate Addendum be made to the Estimates as tabled to reflect the amendments made by the Assembly on the Estimates or respective Votes.

Pronouncement of the Budget highlights and Revenue raising measures before the Budget and Appropriations Committee

222. (1) The Member of County Executive Committee responsible for finance shall in

accordance with the Public Finance Management Act make a public pronouncement of the budget policy highlights and revenue raising measures for the county government.

(2) On the same date that the budget policy highlights and revenue raising measures are pronounced, the Member of County Executive Committee responsible for finance shall submit to the Assembly a legislative proposal, setting out the revenue raising measures for the county government, together with a policy statement expounding on those measures.

(3) Any recommendations made by the relevant committee or adopted by the Assembly on revenue matters shall –

(a) ensure that the total amount of revenue raised is consistent with the approved fiscal framework and the County Allocation of Revenue Act;

(b) take into account the principles of equity, certainty and ease of collection;

(c) consider the impact of the proposed changes on the composition of tax revenue with reference to direct and indirect taxes;

(d) consider domestic, regional and international tax trends;

(e) consider the impact on development, investment, employment and economic growth; and

(f) take into account the taxation and other tariff agreements and obligations that Kenya has ratified, including taxation and tariff agreements under the East African Community Treaty.

(4) The recommendation of the Member of County Executive Committee responsible for finance shall be included in a report and Tabled in the Assembly.

(5) The Speaker may designate a suitable place in the Chamber for the purposes of admitting the County Executive Committee Member in charge of Finance to make the public pronouncement of the budget policy highlights and revenue raising measures.

(6) The public pronouncement under paragraph (1) shall be heard without question or clarification.

Vote on Account

223. (1) Following approval of the Budget Estimates, if the County Appropriation Bill for a

financial year has not been assented to, or is not likely to be assented to by the beginning of that financial year, the Assembly may authorize the withdrawal of money from the County Revenue Fund.

(2) A Motion seeking the authorization of withdrawals under paragraph (1) shall be known as a Vote on Account.

(2) Money withdrawn under sub section (1)—

(a) may be used only for the purpose of meeting expenditure necessary to carry on the services of the county government during the financial year concerned until such time as the relevant Appropriation law is passed; and

(b) may not exceed, in total, one-half of the amount included in the estimates of expenditure submitted to the Assembly for that year.

(3) The Speaker shall, within seven days, communicate the authorization in sub section (1) to the County Executive Committee Member for finance.

(5) The money withdrawn under sub section (1) shall be included in the appropriation law, under separate votes, for the services for which it is withdrawn.

Procedure on Supplementary Estimates

224. (1) The county government shall submit to the Assembly for approval, a

Supplementary Budget in support of money spent under section 135 of the Pubic Finance Management Act.

(2) The Supplementary Budget shall include a statement showing how the additional expenditure relates to the fiscal responsibility principles and financial objectives.

(3) On any day on which an Order of the Day for Supplementary Estimates has been set down under this Standing Order, the business of such Order shall commence not later than three hours before the time for interruption of business.

(4) Unless the Assembly orders, that the business under paragraph (3) shall continue for more than one day, the Chairperson of the Committee of the Whole Assembly shall, half an hour before the time for interruption of business forthwith put every Question necessary to dispose of the Motion then under consideration and shall then forthwith put severally the questions necessary to dispose of the business.

(5) On any day upon which the Chairperson is under this order directed to put forth with any Questions, the consideration of the business shall not be anticipated by a Motion for the adjournment of the Assembly, and no dilatory Motion shall be moved in relation to the business, and the business shall not be interrupted under any Standing Order.

(6) Except as provided in this Standing Order, the approval of the Assembly for any spending under this section shall be sought within two months after the first withdrawal of the money.

(7) If the Assembly is not sitting during the time contemplated in paragraph (6), or is sitting but adjourns before approval has been sought, approval shall be sought within fourteen days after it next sits.

(8) After Assembly has approved spending under sub-section (1), an Appropriation Bill shall be introduced for the appropriation of the money spent.

Consideration of Finance Bill

225. (1) Following the submission of the legislative proposal by the Member of County

Executive Committee responsible for finance under Standing Order 222 (Pronouncement of the Budget highlights and Revenue raising measures), the Finance Committee shall introduce, to the Assembly, the Finance Bill in the form in which the Bill was submitted as a legislative proposal by the Member of County Executive Committee responsible for finance together with any other report of the committee on the Bill.

(2) Any of the recommendations made by the committee or adopted by the Assembly on revenue matters shall –

(a) ensure that the total amount of revenue raised is consistent with the approved fiscal framework;

(b) take into account the principles of equity, certainty and ease of collection;

(c) consider the impact of the proposed changes on the composition of the tax revenue with reference to the direct and indirect taxes;

(d) consider domestic, regional and international tax trends;

(e) consider the impact on development, investment, employment and economic growth;

(f) take into account the recommendations of the County Executive Committee Member for finance; and

(g) take into account the taxation and other tariff agreements and obligations that Kenya has ratified, including taxation and tariff agreements under the East African Community Treaty.

(3) The recommendation of the Member of County Executive Committee responsible for finance shall be included in the report and tabled in the Assembly

Passage of Finance Bill

226. Not later than ninety days after passing the Appropriation Bill, the Assembly shall consider and approve the Finance Bill with or without amendments.

Procedure for approval of the County Integrated Development Plan

the County Executive Committee Member responsible for Planning shall at least once in every five years, prepare and submit to the Assembly, the draft County Integrated Development Plan.

(2) The Speaker shall cause the draft County Integrated Development Plan to be laid before the County Assembly.

(3) Upon being laid before the Assembly, the County Integrated Development Plan shall be deemed to have been committed to each sectoral committee without Question put, for each such committee to deliberate upon according to their respective mandates and, within twenty one days, submit their views to the Finance and Economic Planning Committee.

(4) The Finance and Economic Planning Committee shall consider and review the County Integrated Development Plan and make recommendations to the Assembly, taking into account the views of the sectoral committees, the views of the Executive Committee Member in charge of Planning and the public.

(5) The approval by the Assembly of the Motion on the report of the relevant committee on the County Integrated Development Plan shall constitute the County Assembly Resolution setting forth the planned priorities for the period.

(6) Within ninety days following the submission of the County Integrated Development Plan by the Executive Committee Member in charge of Planning, the Assembly shall consider and may, by resolution, adopt the County Integ