(6) A public officer who contravenes this section commits an offence and on conviction is liable to a term of imprisonment not exceeding two years or to a fine not exceeding one million shillings, or to both.

(7) Where a national government entity or a county government entity— (a) engages in an action that it is prohibited from doing by this Act; or (b) fails to comply with an obligation imposed on it by this Act, a public officer who assisted or facilitated the act, or who was a party to, or contributed to, the failure, commits an offence and on conviction is liable to a term of imprisonment not exceeding two years or to a fine not exceeding one million shillings, or to both in addition to provisions under Article 226(5) of the Constitution.

197. Offences of financial misconduct (1) A public officer employed by the national government or a national government entity commits an offence of financial misconduct if, without lawful authority, the officer— (a) issues public government securities, or varies their terms and conditions; (b) opens a bank account in the name of the government; (c) lends money on behalf of the Government; (d) issues guarantees or indemnities on behalf of the Government; (e) issues securities for loans made to the government; (f) disposes of properly belonging to or under the control of, that government or entity; (g) fails to pay into a government hank account any public money entrusted to the officer or received by the officer for or on behalf of that government or that entity; (h) incurs expenditure or makes a commitment on behalf of that government or entity; 115 No. 18 of 2012 Public Finance Management [Rev. 2020] (i) incurs wasteful expenditure on behalf of that government or entity; (j) fails to deliver to that government or entity a gift or donation made on a public or official occasion in accordance with the Public Officers Ethics Act; (k) fails to provide any information in the officer’s possession, or under the officer’s control, in relation to the financial management, financial performance, or banking activities of that government or entity or in relation to the management or control of an asset or liability of that government or entity when required to do so, except where such refusal or failure is required or authorised by this Act or any other written law; (l) fails to keep proper records or conceals, or wrongfully destroys, information that is required to be recorded; (m) intentionally or recklessly obstructs or hinders a person while that person is acting in the performance or exercise of the person’s functions or powers under this Act; (n) makes any statement or declaration, or gives any information or certificate, lawfully required by or under this Act knowing it to be false or misleading in a material respect; (o) for the purpose of procuring for the public officer or any other person or organisation— (i) makes improper payment of public money belonging to or

entrusted to that government or entity; or (ii) makes improper use of any public property of that government or entity; or (p) fails to remit revenue received contrary to the provisions of sections 76(2) and 158(2) of this Act.

198. Other offences by public officers (1) A public officer commits an offence if that officer— (a) takes possession of public funds or assets without lawful authority; (b) misappropriates public funds or assets; (c) conceals information on public finances to obtain a financial benefit either for the officer or another person; or (d) engages in a corrupt act.

(2) In this section, “corrupt act” includes soliciting or receiving an inducement. 199. Penalties for offences Except as otherwise provided by this Act, a person who is found guilty of committing an offence under this Act for which no other punishment is given, that person is liable on conviction to a term of imprisonment not exceeding five years or to a fine not exceeding ten million shillings, or to both.

200. Duty of Principal Secretary to report suspected offences to relevant law enforcement authority for investigation

(1) If the Principal Secretary suspects that an offence may have been committed under this Act, that Secretary shall take all practicable steps to report the matter to the relevant law enforcement authority to enable that authority to 116 [Rev. 2020] Public Finance Management No. 18 of 2012 investigate the suspected offence and, if evidence of the offence is discovered, institute proceedings to prosecute any person who is alleged to have committed it.

(2) If the Principal Secretary fails to report a suspected offence as required by subsection (1), that Principal Secretary is liable to disciplinary action in accordance with— (a) the terms and conditions of that Principal Secretary’s appointment or employment; and (b) any provisions prescribed by regulations for the purposes of this section.

201. Duty of County Chief Officer to report suspected offences (1) If the County Chief Officer suspects that an offence may have been committed under this Act, he or she shall notify the County Executive Committee member for finance and take all practicable steps to report the matter to the relevant law enforcement authority to enable that authority to investigate the suspected offence and, if evidence of the offence is discovered, to institute proceedings to prosecute any person who is alleged to have committed it.