(4) The county treasury shall maintain the following additional information with respect to every such loan- (a) the names of the parties to the loan; The Public Finance Management Act, 2012 125 (b) the amount of the loan and the currency in which it is expressed and in which it is repayable; (c) the terms and conditions of the loan, including interest and other charges payable and the terms of repayment; (d) the amount of the loan advanced at the time the report under subsection (3) is submitted; (e) the purpose for which the loan was used and the perceived benefits of the loan; and (f) any other information that the county assembly requests.

(5) The County Treasury shall submit both quarterly and annual reports of all loans made to the county government to the county assembly. County Treasury to submit county government debt management strategy to county assembly. 123. (1) On or before the 28th February in each year, the County Treasury shall submit to the county assembly a statement setting out the debt management strategy of the county government over the medium term with regard to its actual liability and potential liability in respect of loans and its plans for dealing with those liabilities.

(2) The County Treasury shall include the following information in the statement - (a) the total stock of debt as at the date of the statement; (b) the sources of loans made to the county government; (c) the principal risks associated with those loans; (d) the assumptions underlying the debt management strategy; and (e) an analysis of the sustainability of the amount of debt, both actual and potential. (3) As soon as practicable after the statement has been submitted to the county assembly under this section, the County Executive Committee member for finance shall publish and publicise the statement and submit a copy to the Commission on Revenue Allocation and the The Public Finance Management Act, 2012 126 Intergovernmental Budget and Economic Council. County Treasury to provide county assembly with additional reports when required.

124. On being requested to do so by the county assembly, the County Treasury shall prepare and submit to the county assembly a report on any matter relating to its responsibilities within fourteen days of the request. County government budget process Stages in county government budget process. 125.(1)The budget process for county governments in any financial year shall consist of the following stages— (a) integrated development planning process which shall include both long term and medium term planning; (b) planning and establishing financial and economic priorities for the county over the medium term; (c) making an overall estimation of the county government’s revenues and expenditures; (d) adoption of County Fiscal Strategy Paper; (e) preparing budget estimates for the county government and submitting estimates to the county assembly; (f) approving of the estimates by the county assembly; (g) enacting an appropriation law and any other laws required to implement the county government’s budget; (h) implementing the county government’s budget; and (i) accounting for, and evaluating, the county government’s budgeted revenues and expenditures;

(2) The County Executive Committee member for finance shall ensure that there is public participation in the budget process. County government to prepare development plan. 126. (1) Every county government shall prepare a development plan in accordance with Article 220(2) of the Constitution, that includes— (a) strategic priorities for the medium term that reflect the county government’s priorities and plans; (b) a description of how the county government is The Public Finance Management Act, 2012 127 responding to changes in the financial and economic environment; (c) programmes to be delivered with details for each programme of— (i) the strategic priorities to which the programme will contribute; (ii) the services or goods to be provided; (iii) measurable indicators of performance where feasible; and (iv) the budget allocated to the programme; (d) payments to be made on behalf of the county government, including details of any grants, benefits and subsidies that are to be paid; (e) a description of significant capital developments; (f) a detailed description of proposals with respect to the development of physical, intellectual, human and other resources of the county, including measurable indicators where those are feasible; (g) a summary budget in the format required by regulations; and (h) such other matters as may be required by the Constitution or this Act.

(2) The County Executive Committee member responsible for planning shall prepare the development plan in accordance with the format prescribed by regulations. (3) The County Executive Committee member responsible for planning shall, not later than the 1st September in each year, submit the development plan to the county assembly for its approval, and send a copy to the Commission on Revenue Allocation and the National Treasury. (4) The County Executive Committee member responsible for planning shall publish and publicise the annual development plan within seven days after its submission to The Public Finance Management Act, 2012 128 the county assembly. County government to prepare cash flow projections.

127. (1) Not later than the 15th June of each financial year, every county government shall prepare an annual cash flow projection for the county for the next financial year, and submit the cash flow projection to the Controller of Budget with copies to the Intergovernmental Budget and Economic Council and the National Treasury. (2) Regulations shall prescribe the format and content of the annual cash flow projections. County Executive Committee member for finance to manage budget process at county government level. 128. (1) The County Executive Committee member for finance shall manage the budget process for the county.

(2) Not later than the 30th August in each year, the County Executive Committee member for finance shall issue a circular setting out guidelines to be followed by all of the county government’s entities in the budget process. (3) The County Executive Committee member for finance shall include in the circular— (a) a schedule for preparation of the budget, specifying the key dates by which the various processes are to be completed; (b) the methodology for the review and projection of revenues and expenditures; (c) key policy areas and issues to be taken into consideration when preparing the budget; (d) the procedures to be followed by members of the public who wish to participate in the budget process; (e) the format in which information and documents relating to the budget are to be submitted; (f) the information to be in conformity with standard budget classification systems as prescribed by regulations; and The Public Finance Management Act, 2012 129 (g) any other information relevant to the budget process.

(4) A county government entity shall comply with the guidelines and, in particular, shall adhere to the key dates specified in the schedule referred to in subsection (3)(a). County Executive Committee member to submit budget estimates and other documents to County Executive Committee for approval. 129. (1) A County Executive Committee member for finance shall submit to the County Executive Committee for its approval— (a) the budget estimates and other documents supporting the budget of the county government, excluding the county assembly; and (b) the draft Bills at county level required to implement the county government budget, in sufficient time to meet the deadlines prescribed by this section.

(2) Following approval by the County Executive Committee, the County Executive Committee member for finance shall— (a) submit to the county assembly the budget estimates, supporting documents, and any other Bills required to implement the budget, except the Finance Bill, by the 30th April in that year; and (b) ensure that the estimates submitted in subsection (a) are in accordance with the resolutions adopted by county assembly on the County Fiscal Strategy Paper. (3) Each county assembly clerk shall prepare and submit to the county assembly the budget estimates for the county assembly and a copy shall be submitted to the County Executive Committee member for finance.