44. National government to submit supplementary budget to Parliament (1) The national government shall submit to Parliament for approval, a supplementary budget in support of money spent under Article 223 of the Constitution.

(2) After Parliament has approved spending under subsection (1), an Appropriation Bill shall be introduced for the appropriation of the money spent.

(3) The supplementary budget shall include a statement showing how the additional expenditure relates to the fiscal responsibility principles and financial objectives.

45. Appropriations to lapse if unspent at the end of the financial year (1) An appropriation that has not been spent at the end of the financial year for which it was appropriated shall lapse immediately at the end of that financial year.

(2) Subject to any other legislation, where, at the end of a financial year, a national government entity is holding appropriated money that was withdrawn from the National Exchequer Account but has not been spent, it shall repay the unspent money into the National Exchequer Account and shall prepare and submit a statement of the same to the Controller of Budget. 39 No. 18 of 2012 Public Finance Management [Rev. 2020] Responsibilities of the Cabinet Secretary and functions of the national government with respect to grants and loans

46. Overall responsibility of Cabinet Secretary (1) The Cabinet Secretary shall, in addition to his or her other functions under the Constitution, this Act and any other legislation— (a) oversee the formulation of macro-economic and financial policies of the Government; (b) by agreement, assist national government entities and county governments in building capacity for efficient, effective and transparent financial management; (c) where applicable, support the efforts of national government entities and county governments to avert or resolve their financial problems.

(2) Within twenty-one days after the end of each month, the Cabinet Secretary shall publish in the Gazette a statement of actual revenues collected by category and net exchequer issues by the National Treasury.

(3) In the performance of the duties and functions under this Act the Cabinet Secretary shall— (a) seek views from county governments on the proposed macroeconomic and financial policies using the Intergovernmental Budget and Economic Council established under this Act; (b) share with national government entities and county governments any findings that may assist national government entities and county governments in improving their financial management; and (c) upon detecting any emerging or impending financial problems in a national government entity or county government, immediately alert the national government entity or county government of the problem.

47. Conditions for receiving grants and donations by national government or its entities or third parties

(1) In this section and section 48— (a) “donation” means a gift or a contribution; (b) “grant” means financial or other assistance by a development partner which is not repayable and— (i) under which public money is paid to or used by a grant recipient; (ii) which is intended to finance or facilitate the development of projects or delivery of services or otherwise assist the grant recipient to achieve goals that are consistent with the policy objectives of the national government; and (iii) under which the grant recipient is required to act in accordance with any terms or conditions specified in a grant agreement. (c) “grant recipient” means the national government or a national government entity authorised to control or spend money under this Act or an incorporated or unincorporated body not otherwise authorised to control or spend money under this Act; (d) “intended beneficiaries” means the people of Kenya whom the projects or public services financed by a grant are intended to benefit; (e) “third party” means any other person other than a public officer. 40 [Rev. 2020] Public Finance Management No. 18 of 2012