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

202. Liability of public officer for certain losses sustained by national government (1) A public officer is personally liable for any loss sustained by the national government that is attributable to— (a) the fraudulent or corrupt conduct, or negligence, of the officer; or (b) the officer’s having done any act prohibited by section 196, 197 and 198.

(2) The National Treasury may, by civil proceedings brought in a court of competent jurisdiction, recover damages from a public officer for any loss for which the officer is liable under subsection (1).

203. Liability of public officer for certain losses sustained by county government (1) A public officer is personally liable for any loss sustained by a county government that is attributable to— (a) the fraudulent or corrupt conduct, or negligence, of the officer; or (b) the officer’s having done any act prohibited by sections 196, 197 and 198.

(2) The County Treasury may, by civil proceedings brought in a court of competent jurisdiction, recover damages from a public officer for any loss for which the officer is liable under subsection (1). 117 No. 18 of 2012 Public Finance Management [Rev. 2020]

204. Cabinet Secretary may impose institutional sanctions on national government entities (1) The Cabinet Secretary may apply sanctions to a national government entity that— (a) approves the contracting of debt beyond any debt limits provided under this Act; (b) defaults on a loan; (c) provides inaccurate information to public officers regarding financial matters; (d) issues a guarantee without proper authorisation; (e) issues a guarantee for an amount in excess of any limits set under this Act; (f) creates liabilities in excess of its ability to finance those liabilities; (g) fails to address issues raised by the Auditor-General to the satisfaction of the Auditor-General; or (h) contravenes section 196.

(2) The Cabinet Secretary may apply any of the following sanctions to a national government entity that has done, or failed to do, anything referred to in subsection (1)— (a) impose on the entity reporting requirements additional to those required by this Act or any other written law; (b) suspend the ability of the entity to reallocate funds; (c) withhold from the entity funds to which the entity would otherwise be entitled under the Constitution or this Act; (d) suspend the entity’s authority to borrow money; (e) treat any accumulated liabilities as a charge on the entity’s future revenues; (f) appoint one or more administrators to administer the entity’s financial affairs for such period as may be specified in the appointment.

PART VIII – MISCELLANEOUS PROVISIONS 205. Powers of the Cabinet Secretary to make regulations (1) The Cabinet Secretary may make regulations, not inconsistent with this Act respecting any matter that is necessary or convenient to be prescribed under this Act or for the carrying out or giving effect to this Act.

(2) In making regulations under this Act, the Cabinet Secretary shall consult the Intergovernmental Budget and Economic Council.

(3) A provision of a regulation may— (a) apply generally or be limited in its application; (b) apply differently according to different factors; (c) authorise any matter or thing to be done from time to time; or (d) do any combination of those things. (3A) Despite the generality in subsection (1), the Cabinet Secretary may make regulations for raising money by issuing a Sukuk bond which shall specify the purpose for which money may be raised. 118 [Rev. 2020] Public Finance Management No. 18 of 2012 (3B) Money raised through a Sukuk bond may be raised within or outside Kenya in Kenya shillings or in any other currency or medium of exchange.