ADVOKS GLOBAL · KENYA
Public Finance Management Act
15. The National Treasury to enforce fiscal responsibility principles
Edition: 2026-09-25 · In force
15. The National Treasury to enforce fiscal responsibility principles
(1)The National Treasury shall manage the national government’s public finances in accordance with the Constitution, and the principles of fiscal responsibility set out in subsection (2).(2)In managing the national government’s public finances, the National Treasury shall enforce the following fiscal responsibility principles—(a)over the medium term a minimum of thirty percent of the national and county governments budget shall be allocated to the development expenditure.(b)the national government’s expenditure on wages and benefits for its public officers shall not exceed a percentage of the national government revenue as prescribed by regulations;(c)over the medium term, the national government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure;(d)public debt and obligations shall be maintained at a sustainable level as approved by Parliament for the national government and the county assembly for county government;(e)fiscal risks shall be managed prudently; and(f)a reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future.(3)For the purposes of subsection (2)(c), short term borrowing shall be restricted to management of cash flows and in case of a bank overdraft facility it shall not exceed five per cent of the most recent audited national government revenue.(4)The National Treasury shall ensure that the level of public debt does not exceed the level specified annually in the medium term national government debt management strategy submitted to Parliament.(5)Regulations made under this Act may add to the list of fiscal principles set out in subsection (2).