ADVOKS GLOBAL · KENYA
Public Finance Management Act
12. General responsibilities of the National Treasury
Edition: 2026-09-25 · In force
12. General responsibilities of the National Treasury
(1)Subject to the Constitution and this Act, the National Treasury shall—(a)formulate, implement and monitor macro-economic policies involving expenditure and revenue;(b)manage the level and composition of public debt, guarantees and other financial obligations of government within the framework of this Act and develop a framework for sustainable debt control;(c)formulate, evaluate and promote economic and financial policies that facilitate social and economic development in conjunction with other national government entities;(d)mobilise domestic and external resources for financing national and county government budgetary requirements;(e)design and prescribe an efficient financial management system for the national and county governments to ensure transparent financial management and standard financial reporting as contemplated by Article 226 of the Constitution:Provided that the National Treasury shall prescribe regulations that ensure that operations of a system under this paragraph respect and promote the distinctiveness of the national and county levels of government;(f)in consultation with the Accounting Standards Board, ensure that uniform accounting standards are applied by the national government and its entities;(g)develop policy for the establishment, management, operation and winding up of public funds;(h)within the framework of this Act and taking into consideration the recommendations of the Commission on Revenue Allocation and the Intergovernmental Budget and Economic Council, prepare the legislative proposals on annual Division of Revenue and County Allocation of Revenue;(i)strengthen financial and fiscal relations between the national government and county governments and encourage support for county governments in terms of Article 190(1) of the Constitution in performing their functions; and(j)assist county governments to develop their capacity for efficient, effective and transparent financial management in consultation with the Cabinet Secretary responsible for matters relating to intergovernmental relations.(2)The National Treasury shall have the following functions, in addition to those in subsection (1)—(a)promote transparency, effective management and accountability with regard to public finances in the national government;(b)ensure proper management and control of, and accounting for the finances of the government and its entities in order to promote the efficient and effective use of budgetary resources;(c)co-ordinate the preparation of annual appropriation accounts and other statutory financial reports by the national government and its entities;(d)prepare annual estimates of revenue of the national government, and co-ordinate the preparation of the budget of the national government;(e)consolidate reports of annual appropriation accounts and other financial statements of the national government and county governments and their entities;(f)report every four months to the National Assembly on the implementation of the annual national budget on areas not reported on by the Controller of Budget;(g)be the custodian of an inventory of national government assets except as may be provided by other legislation or the Constitution;(h)monitor the management of the finances of public enterprises and investments by the national government and its entities;(i)monitor the financial aspects of risk management strategies and governance structures for the national government and national government entities;(j)monitor the financial performance of state corporations; and(k)issue guidelines to national government entities with respect to financial matters and monitoring their implementation and compliance.(3)The National Treasury shall take such other action, not inconsistent with the Constitution, as will further the implementation of this Act.