6. Act to prevail in certain matters This Act shall prevail in the case of any inconsistency between this Act and any other legislation, on the following matters— (a) preparation and submission of budget estimates, including the time for doing so; (b) preparation and submission of accounts for audit, including the time for doing so; (c) borrowing, lending and loan guarantees; (d) raising of revenue and making of expenditures; (e) banking arrangements, including opening of bank accounts and investment of moneys; (f) establishment and management of public funds; and (g) establishment and dissolution of state corporations.

PART II – PARLIAMENTARY OVERSIGHT OF NATIONAL FINANCES Responsibilities of Committees of Parliament

7. Responsibilities of the National Assembly budget committee in public finance matters The committee of the National Assembly established to deal with budgetary matters has responsibility for the following matters, in addition to the functions set out in the Standing Orders— 17 No. 18 of 2012 Public Finance Management [Rev. 2020] (a) discuss and review the Budget Policy Statement and budget estimates and make recommendations to the National Assembly; (b) provide general direction on budgetary matters; (c) monitor all budgetary matters falling within the competence of the National Assembly under this Act and report on those matters to the National Assembly; (d) monitor adherence by Parliament, the Judiciary and the national government and its entities to the principles of public finance and others set out in the Constitution, and to the fiscal responsibility principles of this Act; (e) review the Division of Revenue Bill presented to Parliament and ensure that it reflects the principles under Articles 187(2)(a), 201 and 203 of the Constitution; (f) examine financial statements and other documents submitted to the National Assembly under Part III of this Act and make recommendations to the National Assembly for improving the management of Kenya’s public finances; (g) in accordance with Articles 114, 218 and 221 of the Constitution— (i) make recommendations to the National Assembly on “money Bills”, after taking into account the views of the Cabinet Secretary; and (ii) table in the National Assembly a report containing the views of the Cabinet Secretary in subparagraph (i); and (h) introduce the Appropriations Bill in the National Assembly.

8. Responsibilities of the Senate budget committee in public finance matters (1) The Committee of the Senate established to deal with budgetary and financial matters has responsibilities for the following matters, in addition to the functions set out in the Standing Orders— (a) present to the Senate, subject to the exceptions in the Constitution, the proposal for the basis of allocating revenue among the Counties and consider any bill dealing with county financial matters; (b) review the County Allocation of Revenue Bill and the Division of Revenue Bill in accordance with Article 218(1)(b) of the Constitution at least two months before the end of the financial year; (c) examine financial statements and other documents submitted to the Senate under Part IV of this Act, and make recommendations to the Senate for improving the management of government’s public finances; and (d) monitor adherence by the Senate to the principles of public finance set out in the Constitution, and to the fiscal responsibility principles of this Act.

(2) In carrying out its functions under subsection (1)(a) and (b), the Committee shall consider recommendations from the Commission on Revenue Allocation, County Executive Committee member responsible for finance, the Intergovernmental Budget and Economic Council, the public and any other interested persons or groups. 18 [Rev. 2020] Public Finance Management No. 18 of 2012 Parliamentary Budget Office

9. Parliamentary Budget Office continued (1) The office known as the Parliamentary Budget Office shall continue to exist as an office of the Parliamentary Service.

(2) In addition to any other criteria established by the Parliamentary Service Commission, the Budget Office shall consist of persons appointed on merit by virtue of their experience in finance, economics and public policy matters.

10. Responsibilities of the Parliamentary Budget Office (1) The Parliamentary Budget Office shall— (a) provide professional services in respect of budget, finance, and economic information to the committees of Parliament; (b) prepare reports on budgetary projections and economic forecasts and make proposals to Committees of Parliament responsible for budgetary matters; (c) prepare analyses of specific issues, including financial risks posed by Government policies and activities to guide Parliament; (d) consider budget proposals and economic trends and make recommendations to the relevant committee of Parliament with respect to those proposals and trends; (e) establish and foster relationships with the National Treasury, county treasuries and other national and international organisations, with an interest in budgetary and socio-economic matters as it considers appropriate for the efficient and effective performance of its functions; (f) subject to Article 35 of the Constitution, ensure that all reports and other documents produced by the Parliamentary Budget Office are prepared, published and publicised not later than fourteen days after production; and (g) report to the relevant committees of Parliament on any Bill that is submitted to Parliament that has an economic and financial impact, making reference to the fiscal responsibility principles and to the financial objectives set out in the relevant Budget Policy Statement; and (h) propose, where necessary, alternative fiscal framework in respect of any financial year.

(2) In carrying out its functions under subsection (1), the Parliamentary Budget Office shall observe the principle of public participation in budgetary matters.

PART III – NATIONAL GOVERNMENT RESPONSIBILITIES WITH RESPECT TO THE MANAGEMENT AND CONTROL OF PUBLIC FINANCE Establishment of the National Treasury