(10) At the request of the holder of a county government security, the County Executive Committee member for finance— (a) may authorise the principal, or any interest payable in respect of the principal, to be paid at a place in Kenya or elsewhere different from the place otherwise provided; and (b) may revoke such an authorisation and substitute thereof. (11) A person to whom an authorisation is given under subsection (10) shall comply with the authorisation. (12) The County Executive Committee member for finance may authorise in writing the issue of a duplicate county government security to replace a county Government security that is lost, damaged, or destroyed, but only if the County Executive Committee member for finance is satisfied that loss, damage or destruction has occurred.

(13) Subject to this Act or any other legislation, secondary trading of county government securities may be carried out only in such manner as may be prescribed by regulations made for the purposes of this subsection and in accordance with the provisions of this Act. (14) In this section, “secondary trading” means any activity leading to a change in the ownership of a county government security before its redemption date. (15) Nothing provided under this section shall prevent county government securities to be issued and exist in electronic form as a debt entry.

(16) If the proceeds of a county government security have not been collected by, or cannot be paid to, the holder of the security because the whereabouts of the holder or, if the holder has died, the whereabouts of the holder’s personal representatives, are unknown, the County Executive Committee member for finance shall arrange for the County Treasury to credit the amount of money due to the holder to The Public Finance Management Act, 2012 144 an interest free account for the holder’s benefit.

(17) If, after six years from the redemption date of a county government security, the proceeds of the security have not been collected by, or paid to, the holder or the holder’s personal representatives, the County Executive Committee member for finance shall return the uncollected amount to the County Exchequer Account to form part of the County Revenue Fund in accordance with regulations. (18) The right of any person who has a legitimate claim to the proceeds of a security is not affected by the payment of the proceeds into the County Revenue Fund.

(19) The County Executive Committee member for finance shall publish and publicise annually all payments made in terms of subsection (17). Cap.480. (20) Duty is not chargeable under the Stamp Duty Act for the issue of a county government security. County government authorised to lend money. 145. (1) A county government entity may lend money in accordance with this Act or any county legislation. (2) The County Executive Committee member for finance may, in relation to any money lent by the county government under this section— (a) accept, in consultation with the Central Bank of Kenya, all money payable under the loan in any currency the County Executive Committee member for finance considers appropriate; and (b) agree at any time to the variation of any security given in respect of the loan.

(3) Money loaned under this section is payable only— (a) from an appropriation for development expenditures; or (b) from some other authority approved by the county assembly for the purpose for which the loan is made. (4) The County Executive Committee member for finance shall ensure that a security given in respect of a loan under this section is given in the name of the county government. (5) The County Executive Committee member for finance may, on behalf of the county government, carry out any of the responsibilities, and exercise any of the powers, The Public Finance Management Act, 2012 145 of the county government with respect to securing a loan granted by that county government. County government joint infrastructure investment.

146. (1) Regulations approved by Parliament shall prescribe financial relations with respect to joint infrastructure investments undertaken by counties and any joint infrastructure investments undertaken by counties shall be done in terms of those regulations. (2) The Intergovernmental Budget and Economic Council may agree on regulations with guidelines for county government joint infrastructure investments. Responsibilities of an accounting officer of a county assembly in management of public finances Role of accounting officers in management of public finances. 147. (1) Subject to the Constitution, the accounting officer of a county assembly shall monitor, evaluate and oversee the management of their public finances, including— (a) promoting and enforcing transparency, effective management and accountability with regard to the use of their finances; (b) ensuring that accounting standards are applied; (c) implementing financial policies in relation to their finances; (d) ensuring proper management and control of, and accounting for, their finances in order to promote the efficient and effective use of budgetary resources; (e) preparing annual estimates of expenditures; (f) acting as custodian of the entity’s assets except as may be provided by other legislation or the Constitution; (g) monitoring the management of their finances and their financial performance; (h) reporting regularly to the county assembly on the implementation of their budget; and (i) take such other action, not inconsistent with the Constitution, as will further the implementation of this Act. Responsibilities of accounting officers of county governments and county government entities Designation of accounting officers for county government entities by the County Executive Committee Member for finance.

148. (1) A County Executive Committee member for finance shall, except as otherwise provided by law, in writing designate accounting officers to be responsible for managing the finances of the county government entities as is specified in the designation. (2) Except as otherwise stated in other legislation, the The Public Finance Management Act, 2012 146 person responsible for the administration of a county government entity, shall be the accounting officer responsible for managing the finances of that entity. (3) A County Executive Committee member for finance shall ensure that each county government entity has an accounting officer in accordance with Article 226 of the Constitution.

(4) The Clerk to the county assembly shall be the accounting officer of the county assembly. (5) A county government may, in order to promote efficient use of the county resources, adopt, subject to approval by the county assembly, a centralised county financial management service. Responsibilities of accounting officers designated for county government entities. 149. (1) An accounting officer is accountable to the county assembly for ensuring that the resources of the entity for which the officer is designated are used in a way that is— (a) lawful and authorised; and (b) effective, efficient, economical and transparent.

(2) In carrying out a responsibility imposed by subsection (1), an accounting officer shall, in respect of the entity concerned— (a) ensure that all expenditure made by the entity complies with subsection (1); (b) ensure that the entity keeps financial and accounting records that comply with this Act; (c) ensure that all financial and accounting records that the entity keeps in any form including in electronic form are adequately protected and backed up; (d) ensure that all contracts entered into by the entity are lawful and are complied with; (e) ensure that all applicable accounting procedures are followed when acquiring or disposing of goods and services and that, in the case of goods, adequate arrangements are made for their custody, safe guarding and maintenance; (f) bring a matter to the attention of the County Executive Committee member responsible for the entity if, in the accounting officer’s opinion a decision or policy or proposed decision or policy of the entity may result in resources being used in a The Public Finance Management Act, 2012 147 way that is contrary to subsection (1); (g) prepare a strategic plan for the entity in conformity with the medium term fiscal framework and financial objectives of the county government; (h) prepare estimates of expenditure of the entity in conformity with the strategic plan referred to in paragraph (g); (i) submit the estimates of an entity, which is not a county corporation, to the County Executive Committee member for finance; (j) submit the estimates of an entity, which is a county corporation, to the executive committee member responsible for the entity who, after approving it, shall forward it to the County Executive Committee member for finance; (k) not later than three months after the end of each financial year, prepare annual financial statements for that financial year and submit them to the Auditor-General for audit, with a copy to the County Treasury; (l) try to resolve any issues resulting from an audit that remain outstanding; (m) manage the assets of the entity to ensure that it receives value for money when acquiring, using or disposing of its assets; (n) dispose of assets at the most competitive price and at the lowest possible cost ensuring that the proceeds from all asset disposals are deposited in a bank account of the entity; (o) ensure that the respective county government entity has adequate systems and processes in place to plan for, procure, account for, maintain, store and dispose of assets, including an asset register that is current, accurate and available to the relevant County Treasury or the Auditor-General; (p) provide the County Treasury with any information it requires to fulfil its functions under this Act; (q) provide information on any frauds, losses, or any violations of subsection (1) and provide