ADVOKS GLOBAL · KENYA
Public Finance Management Act
94. Additional indicators of serious or persistent material breach
Edition: 2026-09-25 · In force
94. Additional indicators of serious or persistent material breach
(1)The following factors, singly or in combination, may further indicate that a State organ or public entity is in serious material breach or persistent material breach of the measures established under this Act—(a)the State organ or public entity—(i)has failed to make any payments as and when due;(ii)has defaulted on financial obligations for financial reasons;(iia)has persistently delayed or failed to remit employee salaries, statutory deductions including taxes, pension, social health insurance or cooperative societies deductions;(iii)had an operating deficit in excess of a percentage of revenue in the most recent financial year for which financial information is available as prescribed in regulations; or(iv)is more than sixty days late in submitting its annual financial statements to the Auditor-General in accordance with this Act or any other legislation;(b)the State organ or public entity has failed to make any other payment as and when due, which individually or in the aggregate is more than an amount as may be prescribed or, if none is prescribed, more than two percent of the State organ’s or public entity’s budgeted operating expenditure;(c)the Controller of Budget has raised material issues in their quarterly report;(d)the Auditor-General has withheld an opinion or issued a disclaimer due to inadequacies in the financial statements or records of the State organ or public entity or has issued an opinion which identifies a serious financial problem in the State organ or public entity; or(e)recurring or continuous failure by a State organ or public entity to meet its financial commitments which substantially impairs the State organ’s or public entity’s ability to procure goods, services or credit on usual commercial terms.(2)Provisions of this sections shall not apply with respect—(a)disputed obligations which are subject to litigation in a court of law, provided such litigation is not instituted to avoid an intervention; or(b)obligations explicitly waived by creditors.