The Controller of Budget Regulations

Section 7. Authorization of withdrawal of funds. Section the Consolidated Fund and its components;

Section 8. Request for approval of withdrawal of funds from the consolidated Fund Section 8(1)(a) up to date national exchequer account balance and reconciled national exchequer ledger; Section 8(1)(b) a record from Central Bank of Kenya of payments awaiting funding; Section 8(1)(c) a statement of revenue receipts into the Consolidated Fund; and Section 8(1)(d) up to date national exchequer account statement. Section 8(2)(a) a request for approval for withdrawal to the County Revenue Fund shall be supported by disbursement schedule and any other document in accordance with section 16 of the Act; Section 8(2)(b) a request for approval for withdrawal to the Equalization Fund shall be supported by an Appropriation Act and an extract of the approved budget estimates; Section 8(2)(c) a schedule of development expenditure in line with the request; Section 8(2)(c)(i) a schedule of development expenditure in line with the request; Section 8(2)(c)(ii) up to date project implementation status report, whether ongoing or stalled projects, relating to the request; Section 8(2)(c)(iii) up to date schedule of pending bills and payment plan; Section 8(2)(c)(iv) bank statement reflecting the settle...

Section 9. Request for approval for funds from the Equilization Fund. Section an up to date Equalization Fund bank statement; and

Section 10. Request for approval of withdrawal of funds from the County Revenue Fund. Section 10(1)(a) up to date county exchequer account balance and reconciled exchequer ledger; Section 10(1)(b) a record from Central Bank of Kenya of payments awaiting funding; Section 10(1)(c) a statement of revenue receipts into the County Revenue Fund; and Section 10(1)(d) up to date county exchequer account statement. Section 10(2)(a) a schedule of development expenditure in line with the request; Section 10(2)(a)(i) a schedule of development expenditure in line with the request; Section 10(2)(a)(ii) up to date project implementation status report generated from approved project management government system; Section 10(2)(a)(iii) up to date schedule of pending bills and payment plan; Section 10(2)(a)(iv) bank statements reflecting the settled pending bills; Section 10(2)(a)(v) vote book for development expenditure; Section 10(2)(a)(vi) bank statement of development operational account; and Section 10(2)(a)(vii) an extract of the budget estimates approved by a County Assembly relating to the request. Section 10(2)(b) a summary of the monthly payroll report from an integrated personnel and payro...

Section 11. Request for approval of withdrawal of funds under Article 223(1) of the Constitution Section 11(1)(a) the request from the national government entity, together with reasons indicating that the amount appropriated is insufficient or a need has arisen for expenditure for a purpose for which no amount had been appropriated; Section 11(1)(b) proposed source of funding for the additional expenditure; Section 11(1)(c) an approval issued by the Cabinet Secretary for expenditure together with the justification for approval; and Section 11(1)(d) national exchequer account balances and reconciled exchequer ledgers. Section 11(2)(a) the reason for the request was unforeseen and unavoidable in circumstances where no budget provision was made; Section 11(2)(b) the need was unavoidable in circumstances where there is an existing budgetary provision which however is inadequate: Provided that the expenditure, although known when finalising the estimates of the original budget, could not be accommodated within allocations and tariff adjustments and price increases; Section 11(2)(c) the historical trend of utilization of funds under supplementary appropriation under Article 223 by the re...

Section 12. Request for approval of withdrawal of funds under section 135(1) of the Public Finance Management Act (Cap. 412A) Section 12(1)(a) the request from the county government entity, together with reasons indicating that the amount appropriated is insufficient or a need has arisen for expenditure which no amount had been appropriated; Section 12(1)(b) proposed source of funding for the additional expenditure; Section 12(1)(c) approval issued by the County Executive Committee Member for expenditure together with the justification for approval; and Section 12(1)(d) county exchequer account balances and reconciled exchequer ledgers. Section 12(2)(a) the reason for the request was unforeseen and unavoidable in circumstances where no budget provision was made; Section 12(2)(b) the need was unavoidable in circumstances where there is an existing budgetary provision which however is inadequate: Section 12(2)(c) the historical trend of utilization of funds under section 135 of the Public Finance Management Act (Cap. 412A) by the respective county government entity; Section 12(2)(d) that in any particular financial year, a county government may not spend more than ten per cent of the...

Section 13. Request for approval for withdrawal of funds from a public fund Section 13(1)(a) an Act of Parliament, an Act of County Assembly or statutory instrument establishing the Fund; Section 13(1)(b) fund account balance and reconciled ledger of the fund; Section 13(1)(c) a record from Central Bank of Kenya of payment pending approval; Section 13(1)(d) up to date fund account statements; Section 13(1)(e) authorized signatories for the fund account and their specimen signatures; and Section 13(1)(f) an extract of approved annual workplan. Section 13(2) Where the Controller of Budget is not satisfied that the request for approval of withdrawal of funds complies with the law, he or she may decline to approve the request and give reasons thereof within seven days. Section 13(3) Where the Controller of Budget declines to approve the request of withdrawal of funds, an accounting officer may resubmit the request upon addressing the issues raised by the Controller of Budget. Section 13(4) Where the Controller of Budget is satisfied that the request complies with the law, he or she shall approve the request for withdrawal of funds and submit the approval, in Form B prescribed in the Sc...

Section 14. Request for withdrawal of funds subsequent to transfer of power, functions or competencies between the two levels of Government Section an Agreement on transfer or delegation of powers, functions or competencies duly executed by an authorized officer;

Section 15. Validity of approvals by the Controller of Budget for withdrawal of funds Section 15(1) The approval for withdrawal of funds issued by the Controller of Budget shall be valid for seven days. Section 15(2) Upon expiry of the seven days, the National Treasury or a County Treasury shall resubmit the requisition for approval of withdrawal of funds in accordance with these Regulations.

Section 16. Overdrawing of funds and real time viewer rights Section In order to ensure that the Consolidated Fund, Equalization Fund, County Revenue Fund and any other public funds are not overdrawn, the National Treasury and a County Treasury shall give authority to the Central Bank of Kenya to grant the Controller of Budget real-time viewer rights of the national exchequer Account, a county exchequer account and an account for any other public fund.

Section 17. Compliance and enforcement of budgetary ceilings Section 17(1) The Controller of Budget shall monitor, evaluate, and make recommendations to Parliament, a County Assembly, the National Treasury and a County Treasury on compliance and measures to ensure compliance with budgetary ceilings. Section 17(2)(a) decline to approve a request for withdrawal of funds giving reasons thereof; or Section 17(2)(b) make a recommendation to the National Treasury for stoppage of funds.

Section 18. Advisory on compliance and enforcement of budgetary ceilings Section Parliament;

Section 19. Monitoring, evaluation and reporting for improvement of budget implementation Section Parliament;

Section 20. Development of monitoring, evaluation and reporting framework Section Within one year of commencement of these Regulations, the Controller of Budget shall develop a monitoring and evaluation framework for purposes of carrying out the functions and powers under the Act and these Regulations.

Section 21. Factors to consider when conducting monitoring, evaluation and reporting Section whether the budget estimates comply with the Program Based Budgeting Approach;

Section 22. Submission of quarterly reports to the Controller of Budget Section 22(1) For purposes of preparing the quarterly reports under section 9 of the Act, an accounting officer for a national government entity and county government entity shall prepare financial and nonfinancial report for each quarter of the financial year in respect of the entity in a manner specified by the Controller of Budget. Section 22(2) Not later than the 10th day after the end of every quarter, the accounting officer shall submit a quarterly report to the National Treasury and County Treasury with a copy to the Controller of Budget. Section 22(3) Not later than the 15th day after the end of each quarter, the national treasury and county treasury shall consolidate the quarterly reports under subregulation (2) and submit them to the Controller of Budget. Section 22(4) Despite the first quarterly report of the year submitted under this regulation, each subsequent report shall contain cumulative amounts from the beginning of that year. Section 22(5) The National Treasury and a County Treasury entity shall certify the reports before submitting to the Controller of Budget.

Section 23. Content of the report Section actual revenue receipts disaggregated by revenue streams including appropriation-in-aid;

Section 24. Special reports Section 24(1) The Controller of Budget shall prepare and submit special reports as provided for under section 10 of the Act. Section 24(2) For purposes of preparing the special report under section 10 of the Act, an accounting officer shall submit the requisite information as may be requested by the Controller of Budget.

Section 25. Power to investigate Section The Controller of Budget may conduct investigations on his or her own motion or upon a complaint made by a member of the public on any matter on implementation of the budgets of the national and county governments.

Section 26. Guiding principles for conducting investigations Section independence;

Section 27. Investigating officers Section 27(1) The Controller of Budget shall be an investigating officer for purposes of the Act and these Regulations. Section 27(2) The Controller of Budget may, in writing, delegate the performance of the power conferred on him or her under subregulation (1) to an officer of the Office. Section 27(3) In addition to the officers delegated under subregulation (2), the Controller of Budget may designate, in writing, other public officers to be investigating officers for purposes of the Act and these Regulations. Section 27(4)(a) shall be subject to any conditions that the Controller of Budget may impose; Section 27(4)(b) shall not relieve the Controller of Budget of responsibility concerning the exercise of the performance of the delegated power; and Section 27(4)(c) may be withdrawn or varied by the Controller of Budget. Section 27(5) An officer delegated or designated under this regulation shall, at all times, perform their functions under the superintendence and direction of the Controller of Budget.

Section 28. Impersonating investigator Section 28(1) A person, other than an investigating officer under these Regulations, shall not present himself or herself to be or act as an investigating officer. Section 28(2) A person who contravenes subregulation (1) commits an offence and is liable on conviction to a fine not exceeding twenty thousand shillings or to imprisonment for a term not exceeding six months, or to both.

Section 29. Procedure for conducting investigations Section 29(1) The Controller of Budget shall conduct a preliminary investigation to determine whether a matter to be investigated raises substantive issues to warrant a full investigation. Section 29(2)(a) relates to serious or persistent material breach as provided for under section 94 of the Public Finance Management Act (Cap. 412A); Section 29(2)(b) failure of the budget to be in line with the planning documents; Section 29(2)(b)(i) failure of the budget to be in line with the planning documents; Section 29(2)(b)(ii) failure to apply approved exchequer as authorized; Section 29(2)(b)(iii) where the budget exceeds the set ceilings; Section 29(2)(c) relates to falsification of documents. Section 29(3)(a) oral examination; Section 29(3)(b) documentary and record evidence; Section 29(3)(c) expert evidence; or Section 29(3)(d) site inspection. Section 29(4)(a) report on actual or potential conflict of interest, if any; Section 29(4)(b) ensure confidentiality; Section 29(4)(c) conduct the investigation expeditiously; Section 29(4)(d) base his or her findings on facts and related analysis including reasonable inferences; Section 29(4)...

Section 30. Power to summon, enter and search Section An investigating officer may, with the consent of a person or a court warrant, summon a person, enter upon and search any premises for any record, property or other thing reasonably suspected to be in or on the premises and that has not been produced by a person pursuant to a requirement under the provisions of the Act or these.

Section 31. Action upon investigation Section make a finding and give recommendations; or

Section 32. Conduct of investigation on stoppage of funds Section 32(1) Where the Cabinet Secretary stops the transfer of funds to a national government entity or county government entity, the Controller of Budget shall conduct investigations and submit a report to Parliament. Section 32(2) Within fourteen days of the decision of the Cabinet Secretary to stop the transfer of funds, the Controller of Budget shall conduct investigations to ascertain whether the reasons for the decision by the Cabinet Secretary meet the threshold for serious material breach or persistent material breach as provided for under section 94 of the Public Finance Management Act (Cap. 412A). Section 32(3) The Controller of Budget shall submit the report to Parliament, giving an independent opinion on the findings and details of material breach or persistent material breach in such manner as to allow Parliament make a decision on whether or not to approve or rescind the Cabinet Secretary’s decision to stop the transfer of funds. Section 32(4) The report shall contain recommendations on measures to rectify the breach. Section 32(5) Where the Cabinet Secretary has applied to Parliament to renew a decision to st...

Section 33. Lodging of complaint Section 33(1) A complaint may be lodged at the offices of the Controller of Budget or at such place or places and in such manner as the Controller of Budget may from time to time determine. Section 33(2) A complaint may be lodged by the complainant in person or by a person acting on behalf of the complainant or by any other person authorized by law to act for the complainant, provided that the Controller of Budget may admit anonymous complaints.

Section 34. Register of Complaints Section The Controller of Budget shall maintain a register of all complaints received and action taken, including any resolution made.

Section 35. Oral complaint to be reduced to writing Section 35(1) Where the complaint is made orally, or otherwise, or the complainant cannot read or write, the complaint shall be reduced to writing by an authorized officer. Section 35(2)(a) the name and contact details of the complainant; Section 35(2)(b) the particulars of the respondent; and Section 35(2)(c) the substance of the complaint in sufficient detail to enable the Controller of Budget to act. Section 35(3) The complainant may attach or provide any documents necessary to support the complaint. Section 35(4) Despite the foregoing, a complaint may be made anonymously, or treated in such a manner as to protect the identity of, or particulars of, the complainant where necessary, as may be directed by the Controller of Budget.

Section 36. Screening of complaints Section 36(1) A complaint shall, upon being entered into the register under regulation 34, be forwarded to the relevant department for screening. Section 36(2)(a) admit the complaint; Section 36(2)(b) where appropriate, advise the complainant in writing that the matter is not within the mandate of the Controller of Budget; or Section 36(2)(c) advise the complainant that the matter lies for determination by another public body or institution and refer the same to that body or institution.

Section 37. Discontinuation of a complaint Section 37(1) Where, in the opinion of the Controller of Budget, a complaint does not merit further consideration, he or she may discontinue further proceedings on the complaint, record his or her reasons and notify the complainant of the discontinuation within fourteen days. Section 37(2) The Controller of Budget shall inform the complainant of the right to review the decision taken under subregulation (1). Section 37(3) Where a review is allowed, the provisions of these Regulations shall apply.

Section 38. Review Section 38(1) Where a complaint has been discontinued under regulation 37, the complainant may, in writing, apply to the Controller of Budget for a review of the decision. Section 38(2) Where a review is disallowed, the complaint shall be closed and the complainant notified in writing. Section 38(3) Where a review is allowed, the provisions of these Regulations shall apply.

Section 39. Withdrawal and lapse of complaint Section 39(1) A complainant may, in writing, withdraw a complaint pending before the Controller of Budget at any stage during its consideration. Section 39(2) Where a complainant unjustifiably fails or neglects to respond to communication from the Controller of Budget within three months from the date of the last communication, the Controller of Budget may deem the complaint to have lapsed. Section 39(3) Despite the provisions of subregulations (1) and (2), the Controller of Budget may, in his or her discretion, proceed to deal with a complaint in the public interest. Section 39(4) Where a complaint has lapsed, the complainant may apply to the Controller of Budget for re-admission of the complaint and give reasons in support of the application for re-admission to the satisfaction of the Controller of Budget.

Section 40. Joint consideration of complaint Section 40(1)(a) consolidate the complaints; or Section 40(1)(b) treat one complaint as a test complaint and stay further action on the other complaints pending resolution of the test complaint. Section 40(2) The decision on a test complaint shall apply, mutatis mutandis , to all other complaints with which the test complaint was consolidated.

Section 41. Action on complaint Section 41(1) Upon admission of a complaint, the Controller of Budget shall inform the respondent accordingly. Section 41(2) Upon the expiry of fourteen days, if there is no response from the respondent, a reminder giving a further fourteen days to respond shall be communicated to the respondent. Section 41(3) If there is still no response, the Controller of Budget may issue summons or make such other orders, as he or she may deem fit.

Section 42. Failure to respond to summons Section If a respondent fails to respond to the summons or other orders, the Controller of Budget may proceed to determine the complaint in the absence of the respondent or issue any orders.

Section 43. Resolution of complaint Section conduct investigations in accordance with Part IV;

Section 44. Mediation, conciliation and negotiation Section The Controller of Budget may resolve any matter, relating to budget implementation, brought before him or her by conciliation, mediation or negotiation as provided for under Article 252(1)(b) of the Constitution.

Section 45. Procedure for mediation, conciliation or negotiation Section 45(1) Where the Controller of Budget determines that there is a dispute, he or she shall call upon the parties to resolve the matter amicably within twenty-one days. Section 45(2) Where the parties resolve the matter amicably, the parties shall record the consent and register the same with the Controller of Budget. Section 45(3)(a) the names of the parties to the dispute; and Section 45(3)(b) the date, time and venue of the meeting. Section 45(4) Upon the issuance of a notice, but before the date of the meeting, the Controller of Budget shall constitute a panel comprising officers or persons with relevant expertise in dispute resolution, as the Controller of Budget may consider necessary. Section 45(5) During the meeting, the panel appointed under subregulation (2) may apply such procedures as it may, in the interests of the parties, deem appropriate in the circumstances. Section 45(6) At the conclusion of the process, the parties shall sign an agreement bearing the Common Seal and the signature of the Controller of Budget. Section 45(7) The agreement signed under this regulation shall be deemed to be a determ...

Section 46. Service of process Section 46(1) Any document required or authorized to be served under this Part shall, where practicable, be served personally on the person by delivering or tendering the document to that person. Section 46(2) Where it is not possible to effect personal service, the document may be served in such manner as the Controller of Budget may determine. Section 46(3) Any document requiring service under this Part shall be served by an authorized officer or any other person authorized to do so by the Controller of Budget.

Section 47. Principles of natural justice Section In the determination of disputes under these Regulations, the Controller of Budget shall have due regard to the principles of natural justice and shall not be bound by any legal or technical rules of evidence applicable to proceedings before a court of law.

Section 48. Fees Section The Controller of Budget shall not charge any fee in the lodging and determination of complaints and disputes.

Section 49. Offences Section A person who fails to comply with these Regulations and where a penalty has not been provided for, commits an offence and shall be liable upon conviction to the penalty provided for under Section 22 of the Act.

Section 50. Certification of documents Section Any document submitted to the Controller of Budget under these Regulations shall be certified.

Section 51. Access to information Section 51(1) The Controller of Budget shall provide information on budget implementation matters to the public, by publishing and publicizing quarterly and special reports. Section 51(2)(a) the Controller of Budget’s official website; Section 51(2)(b) print media; Section 51(2)(c) electronic media; or Section 51(2)(d) public fora; Section 51(3) The Controller of Budget shall sensitize the public on budget implementation. Section 51(4) In exercising his or her functions and powers under these Regulations, the Controller of Budget shall be bound by the provisions of the Access to Information Act, Cap 7M.

Section 52. Issuance of circulars Section The Controller of Budget may issue circulars to a national government entity or a county government entity on budget implementation on measures to improve budget implementation and for compliance purposes.

Section 53. Management of information Section 53(1) The Controller of Budget shall maintain confidence in respect of all matters that come to his or her knowledge in the exercise of their duties. Section 53(2) Subject to the provisions of Article 35 of the Constitution, the Controller of Budget shall not be called to give evidence in respect of any matter that comes to their knowledge in the exercise of their duties. Section 53(3) Notwithstanding subregulation (1), the Controller of Budget may disclose in any report made by him or her, any matter that in the opinion of the Controller of Budget may be disclosed in order to establish grounds for the Controller of Budget’s findings and recommendations.

Section 54. Record management Section planning and budget documents submitted under regulation 5 and 6;

Section 55. Digitization Section The Controller of Budget may digitize the processes involved in budget implementation including authorization for withdrawal of funds to enhance efficiency.